|
Maryland
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
6798
(Primary Standard Industrial
Classification Code Number) |
| |
90-0729143
(I.R.S. Employer
Identification Number) |
|
|
Michael J. Kessler, Esq.
David E. Brown, Jr., Esq. Alston & Bird LLP 90 Park Avenue New York, New York 10016 (212) 210-9400 |
| |
Ethan Penner
Founder and Managing Partner MREC Management, LLC 4500 Park Granada, Suite 204 Calabasas, CA 91302 (310) 929-4600 |
| |
Gregory S. Grigorian, Esq.
Sheppard, Mullin, Richter & Hampton LLP 2099 Pennsylvania Avenue, N.W. Suite 100 Washington, DC 20006-6801 (202) 747-1923 |
|
|
Large accelerated filer ☒
|
| |
Accelerated filer ☐
|
| |
Non-accelerated filer ☐
|
| |
Smaller reporting company ☐
|
|
| | | | | | | | | |
Emerging growth company ☐
|
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| | ||||||||||||||||||||||||||||
Title of each Class of Securities to be Registered
|
| | |
Amount to be
Registered |
| | |
Proposed Maximum
Offering Price Per Share |
| | |
Proposed Maximum
Aggregate Offering Price(1) |
| | |
Amount of
Registration Fee(2) |
| ||||||||||||
Class B Common Stock, par value $0.0001 per share
|
| | | | | 30,325,687(3) | | | | | | | N/A | | | | | | $ | 556,045,000(4) | | | | | | $ | 51,546 | | |
Common Stock, par value $0.0001 per share
|
| | | | | 38,199,497(5) | | | | | | | N/A | | | | | | $ | 556,045,000(4) | | | | | | | — | | |
| | | |
Thomas E. Capasse
Chairman and Chief Executive Officer Ready Capital Corporation |
| |
Ethan Penner
Founder and Managing Partner MREC Management, LLC |
|
| | | | | 1 | | | |
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| | | | | 169 | | | |
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| | | | | 171 | | | |
| | | | | 182 | | | |
| | | | | 190 | | | |
| | | | | 193 | | | |
| | | | | 196 | | |
(In thousands, except share
data) |
| |
As of and for the
|
| |||||||||||||||||||||||||||||||||||||||
|
Nine Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
Year Ended
December 31, 2016 |
| |||||||||||||||||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 281,554 | | | | | $ | 193,826 | | | | | $ | 258,636 | | | | | $ | 229,916 | | | | | $ | 169,499 | | | | | $ | 138,305 | | | | | $ | 137,023 | | |
Interest expense
|
| | | | (156,312) | | | | | | (134,162) | | | | | | (175,481) | | | | | | (151,880) | | | | | | (109,238) | | | | | | (74,646) | | | | | | (57,772) | | |
Provision for loan losses
|
| | | | (7,088) | | | | | | (34,984) | | | | | | (34,726) | | | | | | (3,684) | | | | | | (1,701) | | | | | | (2,363) | | | | | | (7,819) | | |
Other non-interest income
(expense) |
| | | | 10,448 | | | | | | (2,054) | | | | | | 6,024 | | | | | | (9,848) | | | | | | 4,283 | | | | | | (13,643) | | | | | | (6,217) | | |
(In thousands, except share
data) |
| |
As of and for the
|
| |||||||||||||||||||||||||||||||||||||||
|
Nine Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
Year Ended
December 31, 2016 |
| |||||||||||||||||||||||
Income before provision for income taxes
|
| | | | 128,602 | | | | | | 22,626 | | | | | | 54,453 | | | | | | 64,504 | | | | | | 62,843 | | | | | | 47,653 | | | | | | 65,215 | | |
Income tax benefit (provision)
|
| | | | (22,216) | | | | | | (4,116) | | | | | | (8,384) | | | | | | 10,552 | | | | | | (1,386) | | | | | | (1,839) | | | | | | (9,651) | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,158) | | |
Net income (loss)
|
| | | | 106,386 | | | | | | 18,510 | | | | | | 46,069 | | | | | | 75,056 | | | | | | 61,457 | | | | | | 45,814 | | | | | | 53,406 | | |
Net income (loss) attributable to Ready Capital Corporation
|
| | | | 99,023 | | | | | | 17,959 | | | | | | 44,870 | | | | | | 72,968 | | | | | | 59,258 | | | | | | 43,290 | | | | | | 49,169 | | |
Basic earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing Operations
|
| | | $ | 1.47 | | | | | $ | 0.32 | | | | | $ | 0.81 | | | | | $ | 1.72 | | | | | $ | 1.84 | | | | | $ | 1.38 | | | | | $ | 1.93 | | |
Net Income
|
| | | $ | 1.47 | | | | | $ | 0.32 | | | | | $ | 0.81 | | | | | $ | 1.72 | | | | | $ | 1.84 | | | | | $ | 1.38 | | | | | $ | 1.85 | | |
Diluted earnings per share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing Operations
|
| | | $ | 1.46 | | | | | $ | 0.31 | | | | | $ | 0.81 | | | | | $ | 1.72 | | | | | $ | 1.84 | | | | | $ | 1.38 | | | | | $ | 1.93 | | |
Net Income
|
| | | $ | 1.46 | | | | | $ | 0.31 | | | | | $ | 0.81 | | | | | $ | 1.72 | | | | | $ | 1.84 | | | | | $ | 1.38 | | | | | $ | 1.85 | | |
Dividends declared per share of
common stock |
| | | $ | 1.24 | | | | | $ | 0.95 | | | | | $ | 1.30 | | | | | $ | 1.60 | | | | | $ | 1.57 | | | | | $ | 1.48 | | | | | $ | 1.61 | | |
Weighted-average basic
shares of common stock outstanding |
| | | | 66,606,749 | | | | | | 53,534,497 | | | | | | 53,736,523 | | | | | | 42,011,750 | | | | | | 32,085,975 | | | | | | 31,350,102 | | | | | | 26,647,981 | | |
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 9,264,398 | | | | | $ | 5,317,510 | | | | | $ | 5,372,095 | | | | | $ | 4,977,018 | | | | | $ | 3,036,843 | | | | | $ | 2,523,503 | | | | | $ | 2,605,267 | | |
Total liabilities
|
| | | $ | 8,026,727 | | | | | $ | 4,493,340 | | | | | $ | 4,537,887 | | | | | $ | 4,132,234 | | | | | $ | 2,472,768 | | | | | $ | 1,968,036 | | | | | $ | 2,053,165 | | |
Total Ready Capital Corporation Stockholders’ equity
|
| | | $ | 1,210,185 | | | | | $ | 805,270 | | | | | $ | 815,396 | | | | | $ | 825,412 | | | | | $ | 544,831 | | | | | $ | 536,073 | | | | | $ | 513,097 | | |
Total non-controlling interests
|
| | | $ | 19,125 | | | | | $ | 18,900 | | | | | $ | 18,812 | | | | | $ | 19,372 | | | | | $ | 19,244 | | | | | $ | 19,394 | | | | | $ | 39,005 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | 68,893 | | | | | $ | (52,397) | | | | | $ | 140,297 | | |
Net cash (used in) provided by investing activities
|
| | | | (59,442) | | | | | | (1,212,792) | | | | | | (580,759) | | |
Net cash (used in) provided by financing activities
|
| | | | 63,051 | | | | | | 1,298,199 | | | | | | 444,478 | | |
Net increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | 72,502 | | | | | | 33,010 | | | | | | 4,016 | | |
Cash, cash equivalents and restricted cash – beginning of year
|
| | | | 127,980 | | | | | | 94,970 | | | | | | 90,954 | | |
Cash, cash equivalents and restricted cash – end of year
|
| | | $ | 200,482 | | | | | $ | 127,980 | | | | | $ | 94,970 | | |
| | |
For the
|
| |||||||||||||||||||||||||||
|
Nine Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |||||||||||||||||
Net Investment Income from Real
Estate Joint Ventures |
| | | $ | 32,704,192 | | | | | $ | 28,183,996 | | | | | $ | 38,716,051 | | | | | $ | 33,384,454 | | | | | $ | 25,329,643 | | |
Fund Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Professional fees
|
| | | | 732,702 | | | | | | 334,794 | | | | | | 511,877 | | | | | | 314,414 | | | | | | 247,211 | | |
Administration expense
|
| | | | 429,335 | | | | | | 472,925 | | | | | | 625,683 | | | | | | 255,228 | | | | | | 215,150 | | |
Organizational expenses
|
| | | | — | | | | | | 20,202 | | | | | | 20,202 | | | | | | 54,220 | | | | | | 54,220 | | |
Management fees
|
| | | | 6,252 | | | | | | 6,543 | | | | | | 8,586 | | | | | | 7,982 | | | | | | 5,542 | | |
Total Fund Expenses
|
| | | | 1,168,289 | | | | | | 834,464 | | | | | | 1,166,348 | | | | | | 631,844 | | | | | | 522,123 | | |
Net Investment Income
|
| | | | 31,535,903 | | | | | | 27,349,532 | | | | | | 37,549,703 | | | | | | 32,752,610 | | | | | | 24,807,520 | | |
Change in Unrealized Appreciation (Depreciation) from Real Estate Joint
Ventures |
| | | | (2,078,098) | | | | | | (2,710,279) | | | | | | (3,046,202) | | | | | | 1,727,017 | | | | | | 3,154,443 | | |
Net Realized Gain (Loss) from Real Estate Joint Ventures
|
| | | | (2,366,335) | | | | | | — | | | | | | — | | | | | | 1,530 | | | | | | (2,646,382) | | |
Net Income
|
| | | $ | 27,091,470 | | | | | $ | 24,639,253 | | | | | $ | 34,503,501 | | | | | $ | 34,481,157 | | | | | $ | 25,315,581 | | |
| | |
For the
|
| |||||||||||||||||||||||||||
|
Nine Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |||||||||||||||||
Net Investment Income from Real
Estate Joint Ventures |
| | | $ | 15,113,156 | | | | | $ | 13,250,184 | | | | | $ | 18,119,690 | | | | | $ | 14,469,586 | | | | | $ | 10,337,706 | | |
Fund Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Professional fees
|
| | | | 340,679 | | | | | | 172,847 | | | | | | 257,903 | | | | | | 170,198 | | | | | | 159,942 | | |
Administration expense
|
| | | | 195,618 | | | | | | 219,345 | | | | | | 290,586 | | | | | | 115,916 | | | | | | 94,445 | | |
Organizational expenses
|
| | | | 11,605 | | | | | | 11,691 | | | | | | 15,616 | | | | | | 15,573 | | | | | | 15,573 | | |
Management fees
|
| | | | 9,428 | | | | | | 8,962 | | | | | | 12,058 | | | | | | 6,791 | | | | | | 2,063 | | |
Total Fund Expenses
|
| | | | 557,330 | | | | | | 412,845 | | | | | | 576,163 | | | | | | 308,478 | | | | | | 272,023 | | |
Net Investment Income
|
| | | | 14,555,826 | | | | | | 12,837,339 | | | | | | 17,543,527 | | | | | | 14,161,108 | | | | | | 10,065,683 | | |
Change in Unrealized Appreciation (Depreciation) from Real Estate Joint
Ventures |
| | | | (969,866) | | | | | | (1,419,910) | | | | | | (1,593,111) | | | | | | 687,955 | | | | | | 1,289,243 | | |
Net Realized Gain (Loss) from Real Estate Joint Ventures
|
| | | | (1,092,836) | | | | | | — | | | | | | — | | | | | | 654 | | | | | | (1,088,989) | | |
Net Income
|
| | | $ | 12,493,124 | | | | | $ | 11,417,429 | | | | | $ | 15,950,416 | | | | | $ | 14,849,717 | | | | | $ | 10,265,937 | | |
| | |
For the
|
| |||||||||||||||||||||||||||
|
Nine Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2020 |
| |
Year
Ended December 30, 2020 |
| |
Year
Ended December 30, 2019 |
| |
Year
Ended December 30, 2018 |
| |||||||||||||||||
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 1,164,957 | | | | | $ | 747,364 | | | | | $ | 1,040,028 | | | | | $ | 764,381 | | | | | $ | 805,836 | | |
Fund Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income
|
| | | | 89,552 | | | | | | 91,254 | | | | | | 129,581 | | | | | | — | | | | | | — | | |
Total Fund Income
|
| | | | 1,254,509 | | | | | | 838,618 | | | | | | 1,169,609 | | | | | | 764,381 | | | | | | 805,836 | | |
Fund Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Administration expense
|
| | | | 15,863 | | | | | | 21,881 | | | | | | 27,494 | | | | | | 19,925 | | | | | | 18,875 | | |
Organizational expenses
|
| | | | 19,771 | | | | | | 19,844 | | | | | | 26,506 | | | | | | 27,610 | | | | | | 26,434 | | |
Professional fees
|
| | | | 83,204 | | | | | | 62,748 | | | | | | 95,341 | | | | | | (103) | | | | | | 42,429 | | |
Total Fund Expenses
|
| | | | 118,838 | | | | | | 104,473 | | | | | | 149,341 | | | | | | 47,432 | | | | | | 87,738 | | |
Net Investment Income
|
| | | | 1,135,671 | | | | | | 734,145 | | | | | | 1,020,268 | | | | | | 716,949 | | | | | | 718,098 | | |
Change in Unrealized Appreciation (Depreciation) from Real Estate Joint Ventures
|
| | | | (84,819) | | | | | | (70,075) | | | | | | (83,952) | | | | | | 51,146 | | | | | | 111,497 | | |
Net Realized Gain (Loss) from Real Estate Joint Ventures
|
| | | | (118,244) | | | | | | — | | | | | | — | | | | | | 50 | | | | | | (103,172) | | |
Net Income
|
| | | $ | 932,608 | | | | | $ | 664,070 | | | | | $ | 936,316 | | | | | $ | 768,145 | | | | | $ | 726,423 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | 7,650,147 | | | | | $ | (59,896,070) | | | | | $ | (43,907,142) | | |
Net cash (used in) provided by financing activities
|
| | | | (6,466,515) | | | | | | 59,594,091 | | | | | | 42,582,890 | | |
Net increase (decrease) in cash
|
| | | | 1,183,632 | | | | | | (301,979) | | | | | | (1,324,252) | | |
Cash – beginning of year
|
| | | | 2,286,623 | | | | | | 2,588,602 | | | | | | 3,912,854 | | |
Cash – end of year
|
| | | $ | 3,470,255 | | | | | $ | 2,286,623 | | | | | $ | 2,588,602 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (1,855,100) | | | | | $ | (35,501,595) | | | | | $ | (24,775,803) | | |
Net cash (used in) provided by financing activities
|
| | | | 1,118,420 | | | | | | 33,234,005 | | | | | | 27,364,894 | | |
Net increase (decrease) in cash
|
| | | | (736,680) | | | | | | (2,267,590) | | | | | | 2,589,091 | | |
Cash – beginning of year
|
| | | | 2,478,345 | | | | | | 4,745,935 | | | | | | 2,156,844 | | |
Cash – end of year
|
| | | $ | 1,741,665 | | | | | $ | 2,478,345 | | | | | $ | 4,745,935 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (2,393,509) | | | | | $ | (274,617) | | | | | $ | (1,658,774) | | |
Net cash (used in) provided by financing activities
|
| | | | 1,382,171 | | | | | | 1,255,389 | | | | | | 777,033 | | |
Net increase (decrease) in cash
|
| | | | (1,011,338) | | | | | | 980,772 | | | | | | (881,741) | | |
Cash – beginning of year
|
| | | | 1,114,523 | | | | | | 133,751 | | | | | | 1,015,492 | | |
Cash – end of year
|
| | | $ | 103,185 | | | | | $ | 1,114,523 | | | | | $ | 133,751 | | |
(In thousands, except
share data) |
| |
As of and for the Nine Months Ended September 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC
TE Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 281,554 | | | | | $ | — | | | | | $ | 34,985 | | | | | $ | — | | | | | $ | 316,539 | | | | | $ | — | | | | | $ | 15,432 | | | | | $ | — | | | | | $ | 296,986 | | | | | $ | — | | | | | $ | 1,975 | | | | | $ | — | | | | | $ | 283,259 | | | | | $ | 333,946 | | |
Interest expense
|
| | | | (156,312) | | | | | | — | | | | | | (6,929) | | | | | | — | | | | | | (163,241) | | | | | | — | | | | | | (3,163) | | | | | | — | | | | | | (159,475) | | | | | | — | | | | | | (485) | | | | | | — | | | | | | (156,797) | | | | | | (166,889) | | |
Provision for loan
losses |
| | | | (7,088) | | | | | | — | | | | | | (2,192) | | | | | | — | | | | | | (9,280) | | | | | | — | | | | | | (973) | | | | | | — | | | | | | (8,061) | | | | | | — | | | | | | (104) | | | | | | — | | | | | | (7,192) | | | | | | (10,357) | | |
Other non-interest
income |
| | | | 253,301 | | | | | | 30,338 | | | | | | (25,692) | | | | | | — | | | | | | 257,947 | | | | | | 14,020 | | | | | | (10,650) | | | | | | — | | | | | | 256,671 | | | | | | 1,137 | | | | | | (586) | | | | | | — | | | | | | 253,852 | | | | | | 261,868 | | |
Other non-interest expense
|
| | | | (242,853) | | | | | | (3,247) | | | | | | 550 | | | | | | (23,207) | | | | | | (268,757) | | | | | | (1,527) | | | | | | (632) | | | | | | (10,649) | | | | | | (255,661) | | | | | | (204) | | | | | | (518) | | | | | | (832) | | | | | | (244,407) | | | | | | (283,119) | | |
Income tax benefit (provision)
|
| | | | (22,216) | | | | | | — | | | | | | — | | | | | | — | | | | | | (22,216) | | | | | | — | | | | | | — | | | | | | — | | | | | | (22,216) | | | | | | — | | | | | | — | | | | | | — | | | | | | (22,216) | | | | | | (22,216) | | |
Net income (loss)
|
| | | | 106,386 | | | | | | 27,091 | | | | | | 722 | | | | | | (23,207) | | | | | | 110,992 | | | | | | 12,493 | | | | | | 14 | | | | | | (10,649) | | | | | | 108,244 | | | | | | 933 | | | | | | 282 | | | | | | (832) | | | | | | 106,769 | | | | | | 113,233 | | |
Net income (loss)
attributable to common stockholders |
| | | | 99,023 | | | | | | 27,091 | | | | | | — | | | | | | (22,833) | | | | | | 103,281 | | | | | | 12,493 | | | | | | — | | | | | | (10,477) | | | | | | 101,039 | | | | | | 933 | | | | | | — | | | | | | (818) | | | | | | 99,138 | | | | | | 105,412 | | |
Earnings (loss) per common share
-basic |
| | | $ | 1.47 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.19 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.33 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.47 | | | | | $ | 1.09 | | |
Earnings (loss) per common share-
diluted |
| | | $ | 1.46 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.19 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.33 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1.46 | | | | | $ | 1.09 | | |
Weighted-average shares of common stock outstanding
|
| | | | 66,606,749 | | | | | | — | | | | | | — | | | | | | 20,070,940 | | | | | | 86,677,689 | | | | | | — | | | | | | — | | | | | | 9,246,197 | | | | | | 75,852,946 | | | | | | — | | | | | | — | | | | | | 1,008,550 | | | | | | 67,615,299 | | | | | | 96,932,436 | | |
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 9,264,398 | | | | | $ | 402,928 | | | | | $ | 170,933 | | | | | $ | (84,920) | | | | | $ | 9,753,339 | | | | | $ | 192,455 | | | | | $ | 66,288 | | | | | $ | (39,120) | | | | | $ | 9,484,021 | | | | | $ | 18,979 | | | | | $ | 9,578 | | | | | $ | (4,419) | | | | | $ | 9,288,536 | | | | | $ | 9,997,100 | | |
Total liabilities
|
| | | $ | 8,026,727 | | | | | $ | 34,898 | | | | | $ | 160,797 | | | | | $ | — | | | | | $ | 8,222,422 | | | | | $ | 22,913 | | | | | $ | 66,144 | | | | | $ | — | | | | | $ | 8,115,784 | | | | | $ | 486 | | | | | $ | 9,544 | | | | | $ | (485) | | | | | $ | 8,036,272 | | | | | $ | 8,321,024 | | |
Total stockholders’
equity |
| | | $ | 1,210,185 | | | | | $ | 368,030 | | | | | $ | — | | | | | $ | (84,578) | | | | | $ | 1,493,637 | | | | | $ | 169,542 | | | | | $ | — | | | | | $ | (38,964) | | | | | $ | 1,340,763 | | | | | $ | 18,493 | | | | | $ | — | | | | | $ | (3,916) | | | | | $ | 1,224,762 | | | | | $ | 1,638,792 | | |
Total non-controlling interests
|
| | | $ | 19,125 | | | | | $ | — | | | | | $ | 10,136 | | | | | $ | (342) | | | | | $ | 28,919 | | | | | $ | — | | | | | $ | 144 | | | | | $ | (156) | | | | | $ | 19,113 | | | | | $ | — | | | | | $ | 34 | | | | | $ | (18) | | | | | $ | 19,141 | | | | | $ | 28,923 | | |
Total Redeemable Preferred Stock
|
| | | $ | 8,361 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,361 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,361 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,361 | | | | | $ | 8,361 | | |
(In thousands, except
share data) |
| |
For the Year Ended December 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC
TE Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| |
Transaction
Accounting Adjustments |
| |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 258,636 | | | | | $ | — | | | | | $ | 42,957 | | | | | $ | — | | | | | $ | 301,593 | | | | | $ | — | | | | | $ | 19,950 | | | | | $ | — | | | | | $ | 278,586 | | | | | $ | — | | | | | $ | 1,945 | | | | | $ | — | | | | | $ | 260,581 | | | | | $ | 323,488 | | |
Interest expense
|
| | | | (175,481) | | | | | | — | | | | | | (4,026) | | | | | | — | | | | | | (179,507) | | | | | | — | | | | | | (6,369) | | | | | | — | | | | | | (181,850) | | | | | | — | | | | | | (703) | | | | | | — | | | | | | (176,184) | | | | | | (186,579) | | |
Provision for loan
losses |
| | | | (34,726) | | | | | | — | | | | | | (3,226) | | | | | | — | | | | | | (37,952) | | | | | | — | | | | | | (1,599) | | | | | | — | | | | | | (36,325) | | | | | | — | | | | | | (112) | | | | | | — | | | | | | (34,838) | | | | | | (39,663) | | |
Other non-interest
income |
| | | | 334,757 | | | | | | 38,716 | | | | | | (33,553) | | | | | | — | | | | | | 339,920 | | | | | | 18,120 | | | | | | (11,570) | | | | | | — | | | | | | 341,307 | | | | | | 1,170 | | | | | | (369) | | | | | | — | | | | | | 335,558 | | | | | | 347,271 | | |
Other non-interest expense
|
| | | | (328,733) | | | | | | (4,213) | | | | | | (1,144) | | | | | | (24,230) | | | | | | (358,320) | | | | | | (2,170) | | | | | | (395) | | | | | | (11,188) | | | | | | (342,486) | | | | | | (234) | | | | | | (491) | | | | | | (844) | | | | | | (330,302) | | | | | | (373,642) | | |
Income tax benefit (provision)
|
| | | | (8,384) | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,384) | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,384) | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,384) | | | | | | (8,384) | | |
Net income (loss)
|
| | | | 46,069 | | | | | | 34,504 | | | | | | 1,008 | | | | | | (24,230) | | | | | | 57,351 | | | | | | 15,950 | | | | | | 17 | | | | | | (11,188) | | | | | | 50,848 | | | | | | 936 | | | | | | 270 | | | | | | (844) | | | | | | 46,431 | | | | | | 62,492 | | |
Net income (loss)
attributable to common stockholders |
| | | | 44,870 | | | | | | 34,504 | | | | | | — | | | | | | (23,812) | | | | | | 55,562 | | | | | | 15,950 | | | | | | — | | | | | | (10,994) | | | | | | 49,826 | | | | | | 936 | | | | | | — | | | | | | (831) | | | | | | 44,975 | | | | | | 60,623 | | |
Earnings (loss) per common share-
basic |
| | | $ | 0.81 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.75 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.79 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.82 | | | | | $ | 0.72 | | |
Earnings (loss) per common share-
diluted |
| | | $ | 0.81 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.75 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.79 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.82 | | | | | $ | 0.72 | | |
Weighted-average shares of common stock outstanding
|
| | | | 53,736,523 | | | | | | — | | | | | | — | | | | | | 20,070,940 | | | | | | 73,807,463 | | | | | | — | | | | | | — | | | | | | 9,246,197 | | | | | | 62,982,720 | | | | | | — | | | | | | — | | | | | | 1,008,550 | | | | | | 54,745,073 | | | | | | 84,062,210 | | |
| | |
Ready Capital
Corporation Historical |
| |
Pro Forma
Combined |
| ||||||
Earnings (loss) Per Common Share | | | | | | | | | | | | | |
Basic: For the nine months ended September 30, 2021
|
| | | $ | 1.47 | | | | | $ | 1.09 | | |
Diluted: For the nine months ended September 30, 2021
|
| | | $ | 1.46 | | | | | $ | 1.09 | | |
Basic: For the year ended December 31, 2020
|
| | | $ | 0.81 | | | | | $ | 0.72 | | |
Diluted: For the year ended December 31, 2020
|
| | | $ | 0.81 | | | | | $ | 0.72 | | |
Book Value per Common Share | | | | | | | | | | | | | |
September 30, 2021
|
| | | $ | 15.07 | | | | | $ | 14.79 | | |
Dividends per share of common stock | | | | | | | | | | | | | |
For the nine months ended September 30, 2021
|
| | | $ | 1.24 | | | | | $ | 1.24 | | |
For the year ended December 31, 2020
|
| | | $ | 1.30 | | | | | $ | 1.30 | | |
Quarter
|
| |
Capital Balance(1)
|
| |
Net Income(2)
|
| |
Quarterly Net
Return(3) |
| |
Yearly Net
Return(3)(4)(5) |
| ||||||||||||
Q2 2015(5)
|
| | | $ | 15,662,104 | | | | | $ | 208,480 | | | | | | 0.76% | | | | | | | | |
Q3 2015
|
| | | | 25,872,213 | | | | | | 620,316 | | | | | | 2.59% | | | | | | | | |
Q4 2015
|
| | | | 33,176,387 | | | | | | 704,567 | | | | | | 2.19% | | | | | | 5.62% | | |
Q1 2016
|
| | | | 40,477,966 | | | | | | 1,226,904 | | | | | | 3.06% | | | | | | | | |
Q2 2016
|
| | | | 49,175,264 | | | | | | 1,549,549 | | | | | | 3.19% | | | | | | | | |
Q3 2016
|
| | | | 69,228,814 | | | | | | 2,107,593 | | | | | | 3.10% | | | | | | | | |
Q4 2016
|
| | | | 74,416,433 | | | | | | 2,624,250 | | | | | | 3.51% | | | | | | 13.49% | | |
Q1 2017
|
| | | | 91,329,564 | | | | | | 2,580,725 | | | | | | 2.88% | | | | | | | | |
Q2 2017
|
| | | | 110,904,964 | | | | | | 2,444,999 | | | | | | 2.23% | | | | | | | | |
Q3 2017
|
| | | | 132,289,669 | | | | | | 2,244,570 | | | | | | 1.72% | | | | | | | | |
Q4 2017
|
| | | | 158,222,744 | | | | | | 3,283,306 | | | | | | 2.08% | | | | | | 9.20% | | |
Q1 2018
|
| | | | 177,074,938 | | | | | | 3,599,080 | | | | | | 2.04% | | | | | | | | |
Q2 2018
|
| | | | 192,344,386 | | | | | | 3,511,696 | | | | | | 1.84% | | | | | | | | |
Q3 2018
|
| | | | 215,106,887 | | | | | | 3,985,369 | | | | | | 1.87% | | | | | | | | |
Q4 2018
|
| | | | 231,760,785 | | | | | | 7,911,785 | | | | | | 3.44% | | | | | | 9.50% | | |
Q1 2019
|
| | | | 245,602,327 | | | | | | 5,427,426 | | | | | | 2.24% | | | | | | | | |
Q2 2019
|
| | | | 269,845,510 | | | | | | 7,923,396 | | | | | | 2.93% | | | | | | | | |
Q3 2019
|
| | | | 298,529,775 | | | | | | 7,205,497 | | | | | | 2.44% | | | | | | | | |
Q4 2019
|
| | | | 324,234,120 | | | | | | 5,336,574 | | | | | | 1.67% | | | | | | 9.59% | | |
Q1 2020
|
| | | | 326,485,800 | | | | | | 6,155,075 | | | | | | 1.90% | | | | | | | | |
Q2 2020
|
| | | | 337,194,195 | | | | | | 5,999,974 | | | | | | 1.79% | | | | | | | | |
Q3 2020
|
| | | | 346,309,929 | | | | | | 6,350,312 | | | | | | 1.84% | | | | | | | | |
Q4 2020
|
| | | | 356,883,999 | | | | | | 7,408,104 | | | | | | 2.09% | | | | | | 7.83% | | |
Q1 2021
|
| | | | 360,144,836 | | | | | | 4,455,104 | | | | | | 1.24% | | | | | | | | |
Q2 2021
|
| | | | 361,194,043 | | | | | | 7,039,637 | | | | | | 1.96% | | | | | | | | |
Q3 2021
|
| | | | 363,636,363 | | | | | | 8,851,348 | | | | | | 2.45% | | | | | | 5.75% | | |
Quarter
|
| |
Capital Balance(1)
|
| |
Net Income(2)
|
| |
Quarterly Net
Return(3) |
| |
Yearly Net
Return(3)(4) |
| ||||||||||||
Q4 2016
|
| | | $ | 16,913,989 | | | | | $ | 578,037 | | | | | | 3.32% | | | | | | 3.32% | | |
Q1 2017
|
| | | | 27,757,812 | | | | | | 778,775 | | | | | | 2.88% | | | | | | | | |
Q2 2017
|
| | | | 38,502,233 | | | | | | 843,133 | | | | | | 2.22% | | | | | | | | |
Q3 2017
|
| | | | 45,318,348 | | | | | | 762,367 | | | | | | 1.70% | | | | | | | | |
Q4 2017
|
| | | | 56,367,003 | | | | | | 1,137,261 | | | | | | 2.01% | | | | | | 9.11% | | |
Q1 2018
|
| | | | 69,086,239 | | | | | | 1,401,442 | | | | | | 2.03% | | | | | | | | |
Q2 2018
|
| | | | 81,078,236 | | | | | | 1,479,578 | | | | | | 1.84% | | | | | | | | |
Q3 2018
|
| | | | 90,145,576 | | | | | | 1,648,322 | | | | | | 1.85% | | | | | | | | |
Q4 2018
|
| | | | 96,515,104 | | | | | | 3,249,184 | | | | | | 3.41% | | | | | | 9.43% | | |
Q1 2019
|
| | | | 103,766,110 | | | | | | 2,289,362 | | | | | | 2.23% | | | | | | | | |
Q2 2019
|
| | | | 116,700,997 | | | | | | 3,437,306 | | | | | | 2.93% | | | | | | | | |
Q3 2019
|
| | | | 130,241,000 | | | | | | 3,261,684 | | | | | | 2.53% | | | | | | | | |
Q4 2019
|
| | | | 141,832,787 | | | | | | 2,241,420 | | | | | | 1.61% | | | | | | 9.63% | | |
Q1 2020
|
| | | | 151,496,014 | | | | | | 2,864,218 | | | | | | 1.91% | | | | | | | | |
Q2 2020
|
| | | | 157,193,821 | | | | | | 2,811,240 | | | | | | 1.80% | | | | | | | | |
Q3 2020
|
| | | | 160,494,067 | | | | | | 2,949,699 | | | | | | 1.84% | | | | | | | | |
Q4 2020
|
| | | | 163,621,920 | | | | | | 3,424,291 | | | | | | 2.10% | | | | | | 7.87% | | |
Q1 2021
|
| | | | 165,536,833 | | | | | | 2,058,821 | | | | | | 1.25% | | | | | | | | |
Q2 2021
|
| | | | 166,438,920 | | | | | | 3,263,730 | | | | | | 1.97% | | | | | | | | |
Q3 2021
|
| | | | 168,086,825 | | | | | | 4,114,268 | | | | | | 2.46% | | | | | | 5.79% | | |
Quarter
|
| |
Capital Balance(1)
|
| |
Net Income(2)
|
| |
Quarterly Net
Return(3) |
| |
Yearly Net
Return(3)(4) |
| ||||||||||||
Q4 2016
|
| | | $ | 1,004,624 | | | | | $ | 19,828 | | | | | | 1.98% | | | | | | 1.98% | | |
Q1 2017
|
| | | | 3,366,469 | | | | | | 75,547 | | | | | | 2.71% | | | | | | | | |
Q2 2017
|
| | | | 6,466,699 | | | | | | 130,811 | | | | | | 2.04% | | | | | | | | |
Q3 2017
|
| | | | 7,090,237 | | | | | | 108,072 | | | | | | 1.53% | | | | | | | | |
Q4 2017
|
| | | | 7,345,710 | | | | | | 123,677 | | | | | | 1.69% | | | | | | 8.22% | | |
Q1 2018
|
| | | | 8,083,449 | | | | | | 148,066 | | | | | | 1.83% | | | | | | | | |
Q2 2018
|
| | | | 9,104,488 | | | | | | 146,194 | | | | | | 1.61% | | | | | | | | |
Q3 2018
|
| | | | 8,980,988 | | | | | | 146,305 | | | | | | 1.64% | | | | | | | | |
Q4 2018
|
| | | | 9,106,062 | | | | | | 285,858 | | | | | | 3.17% | | | | | | 8.51% | | |
Q1 2019
|
| | | | 8,269,813 | | | | | | 151,035 | | | | | | 1.84% | | | | | | | | |
Q2 2019
|
| | | | 8,453,714 | | | | | | 220,775 | | | | | | 2.62% | | | | | | | | |
Quarter
|
| |
Capital Balance(1)
|
| |
Net Income(2)
|
| |
Quarterly Net
Return(3) |
| |
Yearly Net
Return(3)(4) |
| ||||||||||||
Q3 2019
|
| | | | 9,660,872 | | | | | | 228,423 | | | | | | 2.38% | | | | | | | | |
Q4 2019
|
| | | | 10,428,469 | | | | | | 167,912 | | | | | | 1.62% | | | | | | 8.73% | | |
Q1 2020
|
| | | | 11,623,593 | | | | | | 212,806 | | | | | | 1.84% | | | | | | | | |
Q2 2020
|
| | | | 12,540,504 | | | | | | 216,867 | | | | | | 1.74% | | | | | | | | |
Q3 2020
|
| | | | 13,184,641 | | | | | | 234,397 | | | | | | 1.78% | | | | | | | | |
Q4 2020
|
| | | | 13,425,820 | | | | | | 272,246 | | | | | | 2.04% | | | | | | 7.61% | | |
Q1 2021
|
| | | | 13,455,685 | | | | | | 159,769 | | | | | | 1.19% | | | | | | | | |
Q2 2021
|
| | | | 16,804,179 | | | | | | 329,714 | | | | | | 1.91% | | | | | | | | |
Q3 2021
|
| | | | 18,586,673 | | | | | | 443,126 | | | | | | 2.40% | | | | | | 5.59% | | |
Period
|
| |
Capital Balance(1)
|
| |
Net Income(2)
|
| ||||||
Year Ended December 31, 2018
|
| | | $ | 297,096,785 | | | | | $ | 27,512,877 | | |
Year Ended December 31, 2019
|
| | | | 416,891,374 | | | | | | 37,890,810 | | |
Year Ended December 31, 2020
|
| | | | 512,613,576 | | | | | | 38,899,226 | | |
Nine Months Ended September 30, 2020
|
| | | | 505,507,522 | | | | | | 27,794,587 | | |
Nine Months Ended September 30, 2021
|
| | | | 544,628,119 | | | | | | 30,715,045 | | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| |
$ Variance
|
| |
% Variance
|
| ||||||||||||
Capital Balance(1)
|
| | | $ | 544,628,119 | | | | | $ | 505,507,522 | | | | | $ | 39,120,597 | | | | | | 8% | | |
Net Income(2)
|
| | | $ | 30,715,045 | | | | | $ | 27,794,587 | | | | | $ | 2,920,458 | | | | | | 10% | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
$ Variance
|
| |
% Variance
|
| ||||||||||||
Capital Balance(1)
|
| | | $ | 512,613,576 | | | | | $ | 416,891,374 | | | | | $ | 95,722,202 | | | | | | 23% | | |
Net Income(2)
|
| | | $ | 38,899,226 | | | | | $ | 37,890,810 | | | | | $ | 1,008,417 | | | | | | 3% | | |
| | |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |
$ Variance
|
| |
% Variance
|
| ||||||||||||
Capital Balance(1)
|
| | | $ | 416,891,374 | | | | | $ | 297,096,785 | | | | | $ | 119,794,589 | | | | | | 40% | | |
Net Income(2)
|
| | | $ | 37,890,810 | | | | | $ | 27,512,877 | | | | | $ | 10,377,932 | | | | | | 38% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in real estate joint ventures, at fair value
|
| | | $ | 358,432,990 | | | | | $ | 308,610,289 | | | | | $ | 49,822,701 | | | | | | 16% | | |
Cash
|
| | | $ | 3,470,255 | | | | | $ | 2,286,623 | | | | | $ | 1,183,632 | | | | | | 52% | | |
Due from related parties
|
| | | $ | 29,530,157 | | | | | $ | 37,009,307 | | | | | $ | (7,479,150) | | | | | | -20% | | |
Distributions receivable
|
| | | $ | 8,813,925 | | | | | $ | 7,887,079 | | | | | $ | 926,846 | | | | | | 12% | | |
Organizational costs
|
| | | | — | | | | | $ | 20,202 | | | | | $ | (20,202) | | | | | | -100% | | |
Total Assets
|
| | | $ | 400,247,327 | | | | | $ | 355,813,500 | | | | | $ | 44,433,827 | | | | | | 12% | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Redemptions payable
|
| | | $ | 209,852 | | | | | $ | 19,584,101 | | | | | $ | (19,374,249) | | | | | | -99% | | |
Due to related parties
|
| | | $ | 31,779,956 | | | | | $ | 15,328,279 | | | | | $ | 16,451,677 | | | | | | 107% | | |
Distributions payable
|
| | | $ | 6,411,233 | | | | | $ | 6,357,549 | | | | | $ | 53,684 | | | | | | 1% | | |
Contributions received in advance
|
| | | | — | | | | | $ | 1,772,011 | | | | | $ | (1,772,011) | | | | | | -100% | | |
Accounts payable
|
| | | $ | 240,618 | | | | | $ | 296,071 | | | | | $ | (55,453) | | | | | | -19% | | |
Management fees payable
|
| | | $ | 2,713 | | | | | $ | 2,096 | | | | | $ | 617 | | | | | | 29% | | |
Total Liabilities
|
| | | $ | 38,644,372 | | | | | $ | 43,340,107 | | | | | $ | (4,695,735) | | | | | | -11% | | |
Members’ Equity
|
| | | $ | 361,602,955 | | | | | $ | 312,473,393 | | | | | $ | 49,129,562 | | | | |
|
16%
|
| |
Total Liabilities and Members’ Equity
|
| | | $ | 400,247,327 | | | | | $ | 355,813,500 | | | | | $ | 44,433,827 | | | | | | 12% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in real estate joint ventures, at fair value
|
| | | $ | 167,315,873 | | | | | $ | 148,539,804 | | | | | $ | 18,776,069 | | | | | | 13% | | |
Cash
|
| | | $ | 1,741,665 | | | | | $ | 2,478,345 | | | | | $ | (736,680) | | | | | | -30% | | |
Due from related parties
|
| | | $ | 24,567,137 | | | | | $ | 10,115,597 | | | | | $ | 14,451,540 | | | | | | 143% | | |
Distributions receivable
|
| | | $ | 2,180,538 | | | | | $ | 312,508 | | | | | $ | 1,868,030 | | | | | | 598% | | |
Organizational costs
|
| | | $ | 11,605 | | | | | $ | 27,221 | | | | | $ | (15,616) | | | | | | -57% | | |
Total Assets
|
| | | $ | 195,816,818 | | | | | $ | 161,473,475 | | | | | $ | 34,343,343 | | | | | | 21% | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Redemptions payable
|
| | | | — | | | | | $ | 2,010,496 | | | | | $ | (2,010,496) | | | | | | -100% | | |
Due to related parties
|
| | | $ | 27,149,129 | | | | | $ | 9,847,138 | | | | | $ | 17,301,991 | | | | | | 176% | | |
Distributions payable
|
| | | $ | 2,646,030 | | | | | $ | 2,379,775 | | | | | $ | 266,255 | | | | | | 11% | | |
Contributions received in advance
|
| | | | — | | | | | $ | 2,550,000 | | | | | $ | (2,550,000) | | | | | | -100% | | |
Accounts payable
|
| | | $ | 119,861 | | | | | $ | 147,504 | | | | | $ | (27,643) | | | | | | -19% | | |
Management fees payable
|
| | | $ | 3,097 | | | | | $ | 2,938 | | | | | $ | 159 | | | | | | 5% | | |
Total Liabilities
|
| | | $ | 29,918,117 | | | | | $ | 16,937,851 | | | | | $ | 12,980,266 | | | | | | 77% | | |
Members’ Equity
|
| | |
$
|
165,898,701
|
| | | |
$
|
144,535,624
|
| | | |
$
|
21,363,077
|
| | | | | 15% | | |
Total Liabilities and Members’ Equity
|
| | | $ | 195,816,818 | | | | | $ | 161,473,475 | | | | | $ | 34,343,343 | | | | | | 21% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in real estate joint ventures, at fair value
|
| | | $ | 13,785,451 | | | | | $ | 11,295,029 | | | | | $ | 2,490,422 | | | | | | 22% | | |
Cash
|
| | | $ | 103,185 | | | | | $ | 1,114,523 | | | | | $ | (1,011,338) | | | | | | -91% | | |
Due from related parties
|
| | | $ | 3,889,163 | | | | | $ | 2,983,172 | | | | | $ | 905,991 | | | | | | 30% | | |
Organizational costs
|
| | | $ | 21,944 | | | | | $ | 48,450 | | | | | $ | (26,506) | | | | | | -55% | | |
Total Assets
|
| | | $ | 17,799,743 | | | | | $ | 15,441,174 | | | | | $ | 2,358,569 | | | | | | 15% | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Redemptions payable
|
| | | | — | | | | | $ | 1,125,211 | | | | | $ | (1,125,211) | | | | | | -100% | | |
Due to related parties
|
| | | $ | 4,037,650 | | | | | $ | 3,990,932 | | | | | $ | 46,718 | | | | | | 1% | | |
Distributions payable
|
| | | $ | 345,394 | | | | | $ | 194,855 | | | | | $ | 150,539 | | | | | | 77% | | |
Accounts payable
|
| | | $ | 28,859 | | | | | $ | 35,495 | | | | | $ | (6,636) | | | | | | -19% | | |
Total Liabilities
|
| | | $ | 4,411,903 | | | | | $ | 5,346,493 | | | | | $ | (934,590) | | | | | | -17% | | |
Partners’ Capital
|
| | | $ | 13,387,840 | | | | | $ | 10,094,681 | | | | | $ | 3,293,159 | | | | |
|
33%
|
| |
Total Liabilities and Partners’ Capital
|
| | | $ | 17,799,743 | | | | | $ | 15,441,174 | | | | | $ | 2,358,569 | | | | | | 15% | | |
Location
|
| |
Real Estate Type
|
| |
Ownership
Type |
| |
Existing
Mortgage on Property |
| |
Tenant
Leases |
| |
Manner
Acquired |
|
Windsor, CA(1) | | |
Land for Multifamily
Development |
| |
Fee Simple
|
| |
No
|
| |
No
|
| |
Deed in Lieu
|
|
Portland, OR(1) | | |
Land for Multifamily
Development |
| |
Fee Simple
|
| |
No
|
| |
No
|
| |
Deed in Lieu
|
|
Pope Valley,
Napa County, CA(1) |
| |
Land for Resort, Vineyard,
and/or Single Family Residences (SFR) |
| |
Controlling
Interest in Joint Venture Holding Fee Simple |
| |
No
|
| |
No
|
| |
Controlling
Interest in Joint Venture Holding Fee Simple |
|
Los Angeles, CA(2) | | |
Office Building
|
| |
Leasehold
Interest |
| |
No
|
| |
Yes
|
| |
Deed in Lieu
|
|
Year
|
| |
Occupancy %
|
| |||
2021
|
| | | | 54.70% | | |
2020
|
| | | | 59.52% | | |
2019
|
| | | | 64.00% | | |
2018
|
| | | | 78.57% | | |
2017
|
| | | | 74.00% | | |
Year
|
| |
Rental Rate
Per Square Foot |
| |||
2021
|
| | | $ | 34.79 | | |
2020
|
| | | $ | 38.04 | | |
2019
|
| | | $ | 37.08 | | |
2018
|
| | | $ | 25.83 | | |
2017
|
| | | $ | 23.90 | | |
Tenant
|
| |
Percentage of
Total NRA |
| |
Annual Rent
Per Square Foot |
| |
Lease
Expiration Date |
| |
Lease
Renewal Options |
| |
Nature of Business
|
| |||||||||
Non-profit life science and research
|
| | | | 18.01% | | | | | $ | 35.22 | | | | | | 10/31/2022 | | | |
One option for
five years |
| |
Organ/tissue donor bank
and medical research |
|
Year
|
| |
Number of
Tenants |
| |
Square Feet
|
| |
Annual
Base Rent |
| |
Percentage of
Gross Annual Base Rent |
| ||||||||||||
2021
|
| | | | 3 | | | | | | 26,710 | | | | | | 761,554 | | | | | | 13.39% | | |
2022
|
| | | | 6 | | | | | | 58,605 | | | | | | 2,165,081 | | | | | | 38.06% | | |
2023
|
| | | | 3 | | | | | | 7,943 | | | | | | 340,788 | | | | | | 5.99% | | |
2024
|
| | | | 2 | | | | | | 7,489 | | | | | | 328,290 | | | | | | 5.77% | | |
2025
|
| | | | 3 | | | | | | 17,683 | | | | | | 813,977 | | | | | | 14.31% | | |
2026
|
| | | | 0 | | | | | | — | | | | | | — | | | | | | 0.00% | | |
2027
|
| | | | 1 | | | | | | 21,217 | | | | | | 916,574 | | | | | | 16.11% | | |
2028
|
| | | | 0 | | | | | | — | | | | | | — | | | | | | 0.00% | | |
2029
|
| | | | 0 | | | | | | — | | | | | | — | | | | | | 0.00% | | |
2030
|
| | | | 0 | | | | | | — | | | | | | — | | | | | | 0.00% | | |
2031
|
| | | | 0 | | | | | | — | | | | | | — | | | | | | 0.00% | | |
2032+
|
| | | | 1 | | | | | | 9,134 | | | | | | 361,706 | | | | | | 6.36% | | |
Total
|
| | | | 21 | | | | | | 148,781 | | | | | | 5,687,970 | | | | | | 100.00% | | |
Mosaic Public Trading Companies Analysis
|
| |
Low
|
| |
Median
|
| |
Mean
|
| |
High
|
| ||||||||||||
Price / Reported Tangible Book Value
|
| | | | 0.82x | | | | | | 1.09x | | | | | | 1.13x | | | | | | 1.65x | | |
Dividend Yield
|
| | | | 7.3% | | | | | | 7.9% | | | | | | 8.3% | | | | | | 10.8% | | |
Selected Companies
|
| |
Implied Aggregate Equity Value
(in millions) |
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Tangible Book Value
|
| | | $ | 497 | | | | | $ | 608 | | |
Dividend Yield
|
| | | $ | 349 | | | | | $ | 426 | | |
Ready Capital Public Trading Companies Analysis
|
| |
Low
|
| |
Median
|
| |
Mean
|
| |
High
|
| ||||||||||||
Price / Tangible Book Value
|
| | | | 1.01x | | | | | | 1.17x | | | | | | 1.33x | | | | | | 1.91x | | |
Dividend Yield
|
| | | | 7.2% | | | | | | 7.8% | | | | | | 8.0% | | | | | | 9.3% | | |
Selected Companies
|
| |
Implied Equity Value per Share
|
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Tangible Book Value Per Share
|
| | | $ | 13.73 | | | | | $ | 16.61 | | |
Dividend Yield
|
| | | $ | 15.27 | | | | | $ | 18.67 | | |
Date Announced
|
| |
Target
|
| |
Acquiror
|
| |
Price / Tangible
Book Value |
|
July 26, 2021 | | | Capstead Mortgage Corporation | | | Benefit Street Partners Realty Trust, Inc. | | |
1.16x
|
|
December 6, 2020 | | | Anworth Mortgage Asset Corporation | | | Ready Capital Corporation | | |
0.94x
|
|
August 3, 2020 | | | Jernigan Capital, Inc. | | | NexPoint Advisors LP | | |
1.07x
|
|
November 7, 2018 | | | Owens Realty Mortgage, Inc. | | | Ready Capital Corporation | | |
0.94x
|
|
May 2, 2018 | | | MTGE Investment Corp. | | | Annaly Capital Management | | |
0.99x
|
|
April 26, 2018 | | | CYS Investments | | |
Two Harbors Investment Corp.
|
| |
1.05x
|
|
April 11, 2016 | | | Hatteras Financial Corp. | | | Annaly Capital Management | | |
0.85x
|
|
April 7, 2016 | | | ZAIS Financial Corp. | | | Sutherland Asset Management Corp. | | |
1.03x
|
|
February 26, 2016 | | | Apollo Residential Mortgage | | | Apollo Commercial Real Estate Finance | | |
0.89x
|
|
| | |
Implied Aggregate Equity Value
(in millions) |
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Price / Tangible Book Value
|
| | | $ | 497 | | | | | $ | 580 | | |
| | |
Implied Aggregate Equity Value
(in millions) |
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Mosaic Merger Entities Dividend Discount Analysis
|
| | | $ | 441 | | | | | $ | 541 | | |
| | |
Implied Equity Value per Share
|
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Ready Capital Dividend Discount Analysis
|
| | | $ | 14.27 | | | | | $ | 17.16 | | |
| | |
Implied Equity Value per Share
|
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Selected Public Companies Analysis | | | | | | | | | | | | | |
Price / Tangible Book Value
|
| | | $ | 13.73 | | | | | $ | 16.61 | | |
Dividend Yield
|
| | | $ | 15.27 | | | | | $ | 18.67 | | |
Dividend Discount Analysis
|
| | | $ | 14.27 | | | | | $ | 17.16 | | |
| | |
Implied Aggregate Equity Value
(in millions) |
| |||||||||
|
Low
|
| |
High
|
| ||||||||
Selected Public Companies Analysis | | | | | | | | | | | | | |
Price / Tangible Book Value
|
| | | $ | 497 | | | | | $ | 608 | | |
Selected Transactions Analysis
|
| | | $ | 497 | | | | | $ | 580 | | |
Dividend Discount Analysis
|
| | | $ | 441 | | | | | $ | 541 | | |
Ready Capital Consideration Reference Range
|
| | | $ | 440 | | | | | $ | 516 | | |
Selected Public Comparable Companies
|
| |
Adjusted Price/Book
|
| |||
Ladder Capital
|
| | | | 0.99x | | |
Broadmark Realty Capital
|
| | | | 1.16x | | |
KKR Real Estate Finance Trust
|
| | | | 1.11x | | |
Brightspire Capital
|
| | | | 0.82x | | |
Ready Capital
|
| | | | 1.03x | | |
TPG RE Finance Trust
|
| | | | 0.81x | | |
Granite Point Mortgage Trust
|
| | | | 0.77x | | |
Ares Commercial Real Estate
|
| | | | 1.07x | | |
Valuation Case
|
| |
Implied Valuation
|
| |
Implied P/B
|
| ||||||
Low (25th Percentile)
|
| | | $ | 452.3M | | | | | | 0.82x | | |
Mean
|
| | | $ | 535.2M | | | | | | 0.97x | | |
High (75th Percentile)
|
| | | $ | 595.7M | | | | | | 1.08x | | |
Consideration Case
|
| |
Consideration
|
| |
Stated Book Value
|
| |
Implied P/B
|
| |||||||||
Upfront | | | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
No CER Payment
|
| | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
Full CER Payment
|
| | | $ | 594.6M | | | | | $ | 552.5M | | | | | | 1.08x | | |
Announcement Date
|
| |
Target
|
| |
Acquirer
|
|
07/26/2021 | | | Capstead Mortgage Corporation2 | | | Benefit Street Partners Realty Trust, Inc. | |
12/07/2020 | | | Anworth Mortgage Asset Corp. | | | Ready Capital Corp. | |
11/07/2018 | | | Owens Realty Mortgage, Inc. | | | Ready Capital Corp. | |
05/02/2018 | | | MTGE Investment Corp. | | | Annaly Capital Management, Inc. | |
04/26/2018 | | | CYS Investments, Inc. | | | Two Harbors Investment Corp. | |
04/11/2016 | | | Hatteras Financial Corp. | | | Annaly Capital Management, Inc. | |
02/26/2016 | | | Apollo Residential Mortgage, Inc. | | |
Apollo Commercial Real Estate Finance, Inc.
|
|
Target
|
| |
Acquirer
|
| |
Price/Book Value
|
|
Capstead Mortgage Corporation | | | Benefit Street Partners Realty Trust, Inc. | | |
1.02x
|
|
Anworth Mortgage Asset Corp. | | | Ready Capital Corp. | | |
1.00x
|
|
Owens Realty Mortgage, Inc. | | | Ready Capital Corp. | | |
0.94x
|
|
MTGE Investment Corp. | | | Annaly Capital Management, Inc. | | |
1.02x
|
|
CYS Investments, Inc. | | | Two Harbors Investment Corp. | | |
0.99x
|
|
Hatteras Financial Corp. | | | Annaly Capital Management, Inc. | | |
0.88x
|
|
Apollo Residential Mortgage, Inc. | | | Apollo Commercial Real Estate Finance, Inc. | | |
0.88x
|
|
Valuation Case
|
| |
Implied Valuation
|
| |
Implied P/B
|
| ||||||
Low (25th Percentile)
|
| | | $ | 502.8M | | | | | | 0.91x | | |
Valuation Case
|
| |
Implied Valuation
|
| |
Implied P/B
|
| ||||||
Mean
|
| | | $ | 530.8M | | | | | | 0.96x | | |
High (75th Percentile)
|
| | | $ | 556.7M | | | | | | 1.01x | | |
Consideration Case
|
| |
Consideration
|
| |
Stated Book Value
|
| |
Implied P/B
|
| |||||||||
Upfront | | | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
No CER Payment
|
| | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
Full CER Payment
|
| | | $ | 594.6M | | | | | $ | 552.5M | | | | | | 1.08x | | |
Valuation Case
|
| |
Implied
Valuation |
| |
Implied
P/B |
| ||||||
Potential Standalone with Recent Higher Cost Funding
|
| | | $ | 464.5M | | | | | | 0.84x | | |
Potential Standalone with Ready Capital Bridge Refinancing Only
|
| | | $ | 466.4M | | | | | | 0.84x | | |
Supplemental Analysis with Funding via Ready Capital & No CER Recovery
|
| | | $ | 448.4M | | | | | | 0.81x | | |
Supplemental Analysis with Funding via Ready Capital & Full CER Payment
|
| | | $ | 585.3M | | | | | | 1.06x | | |
Consideration Case
|
| |
Consideration
|
| |
Stated Book Value
|
| |
Implied P/B
|
| |||||||||
Upfront | | | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
No CER Payment
|
| | | $ | 477.0M | | | | | $ | 552.5M | | | | | | 0.86x | | |
Full CER Payment
|
| | | $ | 594.6M | | | | | $ | 552.5M | | | | | | 1.08x | | |
| | |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| ||||||||||||
Tangible Book Value per Share (end of period)
|
| | | | — | | | | | | — | | | | | | — | | | | | $ | 15.15 | | |
Dividends per Share
|
| | | $ | 1.68 | | | | | $ | 1.68 | | | | | $ | 1.68 | | | | | $ | 1.68 | | |
| | |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| ||||||||||||
Mosaic Funds’ Yield(1)
|
| | | | 9.7% | | | | | | 9.2% | | | | | | 11.3% | | | | | | 15.4% | | |
Date
|
| |
Ready Capital Common Stock
|
| |
Implied Per Share Value of
Consideration for MREC Units |
| ||||||||||||||||||||||||||||||
|
High
|
| |
Low
|
| |
Close
|
| |
High
|
| |
Low
|
| |
Close
|
| ||||||||||||||||||||
November 3, 2021
|
| | | $ | 15.73 | | | | | $ | 15.39 | | | | | $ | 15.51 | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
[ • ], 2022
|
| | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
Date
|
| |
Ready Capital Common Stock
|
| |
Implied Per Share Value of
Consideration for MREC TE Units |
| ||||||||||||||||||||||||||||||
|
High
|
| |
Low
|
| |
Close
|
| |
High
|
| |
Low
|
| |
Close
|
| ||||||||||||||||||||
November 3, 2021
|
| | | $ | 15.73 | | | | | $ | 15.39 | | | | | $ | 15.51 | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
[ • ], 2022
|
| | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
Date
|
| |
Ready Capital Common Stock
|
| |
Implied Per Share Value of
Consideration for MREC IIS Interests |
| ||||||||||||||||||||||||||||||
|
High
|
| |
Low
|
| |
Close
|
| |
High
|
| |
Low
|
| |
Close
|
| ||||||||||||||||||||
November 3, 2021
|
| | | $ | 15.73 | | | | | $ | 15.39 | | | | | $ | 15.51 | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
[ • ], 2022
|
| | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
| | |
Ready Capital
Corporation Historical |
| |
Pro Forma
Combined |
| ||||||
Earnings (loss) Per Common Share | | | | | | | | | | | | | |
Basic: For the nine months ended September 30, 2021
|
| | | $ | 1.47 | | | | | $ | 1.09 | | |
Diluted: For the nine months ended September 30, 2021
|
| | | $ | 1.46 | | | | | $ | 1.09 | | |
Basic: For the year ended December 31, 2020
|
| | | $ | 0.81 | | | | | $ | 0.72 | | |
Diluted: For the year ended December 31, 2020
|
| | | $ | 0.81 | | | | | $ | 0.72 | | |
Book Value per Common Share | | | | | | | | | | | | | |
September 30, 2021
|
| | | $ | 15.07 | | | | | $ | 14.79 | | |
Dividends per share of common stock | | | | | | | | | | | | | |
For the nine months ended September 30, 2021
|
| | | $ | 1.24 | | | | | $ | 1.24 | | |
For the year ended December 31, 2020
|
| | | $ | 1.30 | | | | | $ | 1.30 | | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
|
Authorized Capital Stock
|
| |
Ready Capital is authorized to issue 550,000,000 shares, consisting of (i) 500,000,000 shares of common stock, $0.0001 par value per share, and (ii) 50,000,000 shares of preferred stock, $0.0001 par value per share.
As of December 31, 2021, 75,838,050 shares of Common Stock were issued and outstanding.
As of December 31, 2021, (i) 334,678 shares of Series C Preferred Stock and (iii) 4,600,000 shares of Series E
|
| | Limited liability companies and limited partnerships do not have a corollary to the “authorized stock” concept applicable to a corporation. | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | |
Preferred Stock were issued and outstanding,
As of December 31, 2021, 293,003 OP Units, which are redeemable for cash or, at Ready Capital’s option, on a one for-one basis for shares of Common Stock, were held by outside limited partners.
In connection with the Transactions, Ready Capital intends to designate and authorize shares of Class B Common Stock. The Class B Common Stock will rank equally with the Common Stock and will have identical preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions of redemption as the Common Stock. All provisions of the Ready Capital Charter applicable to the Common Stock will apply to the Class B Common Stock. The terms set forth in this table apply equally to the Class B Common Stock and the Common Stock.
Each outstanding share of Class B Common Stock will automatically convert on a one-for-one basis into a share of Common Stock on the first business day following the 365th calendar day following the date that Articles Supplementary become effective; provided that the Ready Capital Board may establish an earlier conversion date.
|
| | | |
|
Size of Board
|
| | The Ready Capital Bylaws and Ready Capital Charter provide that the number of directors may be established only by the Board and may not be less than the minimum number required by the MGCL (which is one) and not | | | The Mosaic Funds do not have boards of directors and the management of the Mosaic Funds is delegated to the Mosaic Manager. | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | | more than 15.The number of directors may be increased or decreased by a majority of the Ready Capital Board. | | | | |
| | | | The Ready Capital Board currently consists of eight (8) directors. | | | | |
|
Election of Directors
|
| | Pursuant to the Ready Capital Bylaws, each of Ready Capital’s directors will be elected by the holders of Common Stock to serve until the next annual meeting of stockholders and until his or her successor is duly elected and qualifies under Maryland law. The Ready Capital Bylaws provide that a plurality of all votes cast at a meeting of stockholders duly called at which a quorum is present is sufficient to elect a director. | | | The Mosaic Funds do not have boards of directors and the management of the Mosaic Funds is delegated to the Mosaic Manager | |
|
Removal of Directors
|
| | The Ready Capital Charter provides that, subject to any rights of holders of one or more classes or series of preferred stock to elect or remove one or more directors, a director may be removed with or without cause but only by the affirmative vote of stockholders entitled to cast at least two-thirds of all the votes entitled to be cast generally in the election of directors. | | |
The Mosaic Funds do not have boards of directors. The MREC and MREC TE operating agreements each prohibit removal of the Mosaic Manager by the members.
The MREC Offshore partnership agreement prohibits removal of the general partner by the limited partners.
|
|
|
Amendment of Charter
|
| | Except for amendments to the provisions of the Ready Capital Charter relating to the vote required to remove a director and the restrictions relating to the ownership and transfer of the Ready Capital shares of stock and amendments to the vote required to amend such provisions (each of which requires the affirmative vote of stockholders entitled to cast at least two-thirds of all the votes entitled to be cast on the matter) and amendments requiring the approval only of the Ready Capital Board, the Ready Capital | | | Not applicable. | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | | Charter generally may be amended only if declared advisable by the Ready Capital Board and approved by the affirmative vote of the holders of not less than a majority of all of the votes entitled to be cast on the matter. | | | | |
|
Amendment of Bylaws
|
| | The Ready Capital Board has the exclusive power to adopt, alter or repeal any provision of the Ready Capital Bylaws and to make new bylaws. | | |
Both the MREC and MREC TE operating agreements may be modified or amended at any time and from time to time with (i) the prior written consent of the manager and a majority of the members or (ii) by notice provided to the members that is not objected to in writing within thirty (30) days of such notice by a majority of units held by the members that are eligible to vote.
The MREC Offshore partnership agreement may be modified or amended at any time and from time to time with (i) the prior written consent of the general partner and a majority of the limited partners or (ii) by notice provided to the limited partners that is not objected to in writing within thirty (30) days of such notice by a majority of units held by the limited partners that are eligible to vote.
|
|
|
Restrictions on Investment and Operating Policies
|
| | None in the Ready Capital Charter or Ready Capital Bylaws. | | |
Both the MREC and MREC TE operating agreements provide that the company’s purpose is to, directly or indirectly, originate and acquire debt secured by real estate and other similar or related intangible investments for its own account and to engage in any other lawful act or activity for which limited liability companies may be formed pursuant to the applicable Delaware law.
The MREC Offshore partnership agreement provides that the company’s purpose is to, directly or indirectly, originate and
|
|
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | | | | | acquire debt secured by real estate and other similar or related intangible investments for its own account and to engage in any other lawful act or activity for which limited partnerships may be formed pursuant to the applicable Cayman Islands law. | |
|
Limitations on Compensation to Management Company
|
| | None in the Ready Capital Charter or Ready Capital Bylaws. | | |
Both the MREC and MREC TE operating agreements provide that the manager shall receive an incentive distribution equal to 25% of all distributable income in excess of 4% of the annual total distribution base, paid quarterly.
The MREC Offshore partnership agreement provides that the general partner shall receive an incentive distribution equal to 25% of all distributable income in excess of 4% of the annual total distribution base, paid quarterly.
Certain members of MREC and MREC TE, and certain limited partners in MREC Offshore, may pay a lower incentive distribution rate or, in lieu of paying an incentive distribution, may pay a fixed management fee for regulatory compliance purposes
|
|
|
Maryland Business Combination Act
|
| | As permitted by the MGCL, the Ready Capital Board has by resolution exempted business combinations (i) between Ready Capital and its affiliates and (ii) between Ready Capital and any other person, provided that such business combination is first approved by the Ready Capital Board (including a majority of Ready Capital’s directors who are not affiliates or associates of such person). However, the Ready Capital Board may repeal or modify this resolution at any time. | | | Not Applicable. | |
|
Approval of Extraordinary Transactions
|
| | Under the MGCL, a Maryland corporation generally cannot merge, convert, sell all or | | | The MREC and MREC TE operating agreements each provide that any (i) merger or | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | |
substantially all of its assets or engage in a statutory share exchange, unless declared advisable by the board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter.
The Ready Capital Charter provides that these actions (other than amendments to the provisions of our charter related to the vote required to remove a director and the restrictions relating to the ownership and transfer of Ready Capital stock and the vote required to amend these provisions) must be approved by a majority of all of the votes entitled to be cast on the matter.
|
| |
consolidation, (ii) transaction in which any person becomes the beneficial owner (directly or indirectly) of more than 50% of the units, or (iii) sale, transfer or other disposition of substantially all of MREC or MREC TE’s assets, in each case, cannot be effected without the consent of the manager and a majority of the unitholders.
The MREC Offshore partnership agreement provides that any (i) merger or consolidation, (ii) transaction in which any person becomes the beneficial owner (directly or indirectly) of more than 50% of the units, or (iii) sale, transfer or other disposition of substantially all of MREC Offshore’s assets, in each case, cannot be effected without the consent of the general partner and a majority of the limited partners.
|
|
|
Ownership and Transfer Restrictions
|
| |
Except with regard to persons who are excepted by the Ready Capital Charter or Ready Capital Board, the Ready Capital Charter restricts ownership of more than 9.8% by value or number of shares, whichever is more restrictive, of the outstanding shares of Common Stock or capital stock.
In addition, no person may beneficially or constructively own shares of Ready Capital’s capital stock to the extent such ownership would result in Ready Capital being “closely held” within the meaning of Section 856(h) of the Code or otherwise failing to qualify as a REIT. Any transfer of shares that would result in Ready Capital’s capital stock being held by less
|
| |
The MREC and MREC TE operating agreements each prohibit any transfer of any member’s interest in whole or in part, without the prior written consent of such entity’s manager (which consent may be withheld in its sole discretion).
The MREC Offshore partnership agreement prohibits any transfer of any limited partner’s interest in whole or in part, without the prior written consent of general partner (which consent may be withheld in its sole discretion).
|
|
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
| | | |
than 100 persons will be void.
The Ready Capital Charter also provides that if any transfer of Ready Capital’s capital stock would result in a person beneficially or constructively owning shares of Ready Capital’s capital stock in violation of such restrictions, such shares will be automatically transferred to a charitable trust or voided.
|
| | | |
|
Special Meetings of Stockholders
|
| |
A special meeting of Ready Capital stockholders may be called by the chairman of the Ready Capital Board, the chief executive officer, president and Ready Capital Board.
A stockholder of record may request a special meeting by following the procedures set forth in the Ready Capital Bylaws. The special meeting request must be signed by stockholders of record entitled to cast not less than a majority of all the votes entitled to be cast on such matter at such proposed meeting.
|
| | None. Each of MREC and MREC TE may hold member meetings as determined by their manager. MREC Offshore may hold partner meetings as determined by its general partner. | |
|
Advanced Notice Requirements of Stockholder Nominations and Proposals
|
| | The Ready Capital Bylaws provide that nominations of individuals for election to the Ready Capital Board and the proposal of other business to be considered by stockholders, the stockholder must be a stockholder of record both at the time of giving advance notice and at the time of the meeting, must be entitled to vote at the meeting and must comply with the other advance notice provisions set forth in the Ready Capital Bylaws. The notice must be provided to the secretary of Ready Capital not earlier than the 150th day and not later than the 120th day prior to the first anniversary of the date of the proxy statement for the preceding year’s annual meeting. | | | None. | |
| | | |
Rights of Ready Capital Stockholders
(which will be the rights of common stockholders of the Combined Company following the Transactions) |
| |
Rights of Interest Holders
|
|
|
Limitation of Liability and Indemnification of Directors and Officers
|
| |
The Ready Capital Charter contains a provision which eliminates the liability of its directors and officers to Ready Capital or its stockholders for money damages to the maximum extent permitted by Maryland law.
The Ready Capital Charter and Ready Capital Bylaws obligate Ready Capital to indemnify its present or former directors and officers, whether serving Ready Capital or at its request any other entity, including the advancement of expenses, to the full extent permitted by Maryland Law. The Ready Capital Charter and Ready Capital Bylaws permit Ready Capital to indemnify and advance expenses to any person who served a predecessor of Ready Capital.
|
| |
The MREC and MREC TE operating agreements each contain provisions which eliminate the liability of its manager to the extent permitted by Delaware law.
The MREC Offshore partnership agreement contains provisions which eliminates the liability of its general partner to the extent permitted by Cayman Islands law.
|
|
|
Appraisal Rights
|
| | The Ready Capital Charter provides that holders of Common Stock have generally have no appraisal rights unless the Ready Capital Board determines that appraisal rights apply, with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which stockholders would otherwise be entitled to exercise appraisal rights. | | | None. | |
Names and Business Address
|
| |
Number of
Shares of Common Stock Beneficially Owned** |
| |
% of All
Shares of Common Stock*** |
| ||||||
Thomas E. Capasse
|
| | | | 439,178(1) | | | | | | * | | |
Jack J. Ross
|
| | | | 413,158(2) | | | | | | * | | |
Andrew Ahlborn
|
| | | | 33,328(3) | | | | | | * | | |
Thomas Buttacavoli
|
| | | | 144,132(4) | | | | | | * | | |
Gary T. Taylor
|
| | | | 38,759(5) | | | | | | * | | |
Adam Zausmer
|
| | | | 16,856 | | | | | | * | | |
Todd M. Sinai
|
| | | | 37,106 | | | | | | * | | |
J. Mitchell Reese
|
| | | | 71,754(6) | | | | | | * | | |
Frank D. Filipps
|
| | | | 34,720 | | | | | | * | | |
Gilbert E. Nathan
|
| | | | 34,953(7) | | | | | | * | | |
Andrea Petro
|
| | | | 10,050 | | | | | | * | | |
Dominique Mielle
|
| | | | 14,376 | | | | | | * | | |
All directors and executive officers as a group (12 persons)
|
| | | | 1,288,370 | | | | | | 1.7% | | |
5% or Greater Beneficial Owner | | | | | | | | | | | | | |
Blackrock, Inc.
|
| | | | 7,433,048(8 | | | | | | 9.8% | | |
Sutherland REIT Holdings, LP
|
| | | | 13,195,300(9) | | | | | | 17.4% | | |
Name / Mosaic Fund Name
|
| |
Direct /
Indirect |
| |
Class of
Units |
| |
Units
Beneficially Owned |
| |
Percentage of All Outstanding
Units in such Mosaic Fund |
| ||||||
Ethan Penner / Mosaic Real Estate Credit, LLC
|
| |
Direct
|
| |
Class A Units
|
| | | | 1,991.11 | | | | | | 0.618% | | |
Millennium Trust Co. LLC Custodian FBO Ethan Penner IRA / Mosaic Real Estate Credit TE, LLC
|
| |
Direct
|
| |
Class Z Units
|
| | | | 753.92 | | | | | | 0.471% | | |
(In Thousands)
|
| |
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro
Forma Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustment |
| | | | |
Pro
Forma Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 209,769 | | | | | $ | 1,726 | | | | | $ | 11,356 | | | |
a
|
| | | $ | (19,463) | | | |
C1
|
| | | $ | 203,388 | | | | | $ | 1,296 | | | | | $ | 5,158 | | | |
a
|
| | | $ | (8,966) | | | |
C1
|
| | | $ | 207,257 | | | | | $ | 150 | | | | | $ | 608 | | | |
a
|
| | | $ | (1,128) | | | |
C1, C5
|
| | | $ | 209,399 | | | | | $ | 200,506 | | |
Restricted cash
|
| | | | 52,692 | | | | | | — | | | | | | 4,455 | | | |
a
|
| | | | — | | | | | | | | | 57,147 | | | | | | — | | | | | | 2,028 | | | |
a
|
| | | | — | | | | | | | | | 54,720 | | | | | | — | | | | | | 221 | | | |
a
|
| | | | — | | | | | | | | | 52,913 | | | | | | 59,396 | | |
Loans, net
|
| | | | 2,384,497 | | | | | | — | | | | | | 384,080 | | | |
a
|
| | | | (50,024) | | | |
C3
|
| | | | 2,718,553 | | | | | | — | | | | | | 174,836 | | | |
a
|
| | | | (23,177) | | | |
C3
|
| | | | 2,536,156 | | | | | | — | | | | | | 19,058 | | | |
a
|
| | | | (2,515) | | | |
C3
|
| | | | 2,401,040 | | | | | | 2,886,755 | | |
Loans, held for sale, at fair value
|
| | | | 549,917 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 549,917 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 549,917 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 549,917 | | | | | | 549,917 | | |
Paycheck Protection Program loans
|
| | | | 1,784,826 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,784,826 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,784,826 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,784,826 | | | | | | 1,784,826 | | |
Mortgage backed securities,
at fair value |
| | | | 117,681 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 117,681 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 117,681 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 117,681 | | | | | | 117,681 | | |
Loans eligible for repurchase
from Ginnie Mae |
| | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | 149,723 | | |
Investment in unconsolidated
joint ventures |
| | | | 125,547 | | | | | | 372,801 | | | | | | (343,205) | | | |
a
|
| | | | — | | | | | | | | | 155,143 | | | | | | 175,334 | | | | | | (162,924) | | | |
a
|
| | | | — | | | | | | | | | 137,957 | | | | | | 18,827 | | | | | | (17,380) | | | |
a
|
| | | | — | | | | | | | | | 126,994 | | | | | | 169,000 | | |
Investment in preferred
equity |
| | | | — | | | | | | — | | | | | | 58,730 | | | |
a
|
| | | | (7,649) | | | |
C3
|
| | | | 51,081 | | | | | | — | | | | | | 25,420 | | | |
a
|
| | | | (3,370) | | | |
C3
|
| | | | 22,050 | | | | | | — | | | | | | 2,900 | | | |
a
|
| | | | (383) | | | |
C3
|
| | | | 2,517 | | | | | | 75,648 | | |
Purchased future receivables,
net |
| | | | 6,567 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,567 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,567 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,567 | | | | | | 6,567 | | |
Derivative instruments
|
| | | | 6,180 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,180 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,180 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 6,180 | | | | | | 6,180 | | |
Servicing rights
|
| | | | 171,106 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 171,106 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 171,106 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 171,106 | | | | | | 171,106 | | |
Real estate owned, held for sale
|
| | | | 70,643 | | | | | | — | | | | | | 59,765 | | | |
a
|
| | | | (7,784) | | | |
C3
|
| | | | 122,624 | | | | | | — | | | | | | 27,206 | | | |
a
|
| | | | (3,607) | | | |
C3
|
| | | | 94,242 | | | | | | — | | | | | | 2,965 | | | |
a
|
| | | | (391) | | | |
C3
|
| | | | 73,217 | | | | | | 148,797 | | |
Other assets
|
| | | | 196,827 | | | | | | — | | | | | | 24,153 | | | |
a, c
|
| | | | — | | | | | | | | | 220,980 | | | | | | — | | | | | | 10,389 | | | |
a, c
|
| | | | — | | | | | | | | | 207,216 | | | | | | — | | | | | | 1,208 | | | |
a, e
|
| | | | (2) | | | |
C5
|
| | | | 198,033 | | | | | | 232,575 | | |
Assets of consolidated
VIEs |
| | | | 3,438,423 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 3,438,423 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 3,438,423 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 3,438,423 | | | | | | 3,438,423 | | |
Due from related parties
|
| | | | — | | | | | | 20,854 | | | | | | (20,854) | | | |
b
|
| | | | — | | | | | | | | | — | | | | | | 15,156 | | | | | | (15,156) | | | |
b
|
| | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | |
Distributions receivable
|
| | | | — | | | | | | 7,547 | | | | | | (7,547) | | | |
c
|
| | | | — | | | | | | | | | — | | | | | | 669 | | | | | | (669) | | | |
c
|
| | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | |
Organizational costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 2 | | | | | | (2) | | | |
e
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Total Assets
|
| | | $ | 9,264,398 | | | | | $ | 402,928 | | | | | $ | 170,933 | | | | | | | | $ | (84,920) | | | | | | | | $ | 9,753,339 | | | | | $ | 192,455 | | | | | $ | 66,288 | | | | | | | | $ | (39,120) | | | | | | | | $ | 9,484,021 | | | | | $ | 18,979 | | | | | $ | 9,578 | | | | | | | | $ | (4,419) | | | | | | | | $ | 9,288,536 | | | | | $ | 9,997,100 | | |
Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured borrowings
|
| | | | 2,044,069 | | | | | | — | | | | | | 109,986 | | | |
a
|
| | | | — | | | | | | | | | 2,154,055 | | | | | | — | | | | | | 49,285 | | | |
a
|
| | | | — | | | | | | | | | 2,093,354 | | | | | | — | | | | | | 5,441 | | | |
a
|
| | | | — | | | | | | | | | 2,049,510 | | | | | | 2,208,781 | | |
Paycheck Protection
Program Liquidity Facility (PPPLF) borrowings |
| | | | 1,945,883 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,945,883 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,945,883 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 1,945,883 | | | | | | 1,945,883 | | |
Securitized debt
obligations of consolidated VIEs, net |
| | | | 2,676,265 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 2,676,265 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 2,676,265 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 2,676,265 | | | | | | 2,676,265 | | |
Convertible notes, net
|
| | | | 112,966 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 112,966 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 112,966 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 112,966 | | | | | | 112,966 | | |
Senior secured notes, net
|
| | | | 179,914 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 179,914 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 179,914 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 179,914 | | | | | | 179,914 | | |
Corporate debt, net
|
| | | | 333,975 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 333,975 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 333,975 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 333,975 | | | | | | 333,975 | | |
Guaranteed loan financing
|
| | | | 348,774 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 348,774 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 348,774 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 348,774 | | | | | | 348,774 | | |
Contingent consideration
|
| | | | 12,400 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 12,400 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 12,400 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 12,400 | | | | | | 12,400 | | |
Liabilities for loans eligible for repurchase from Ginnie Mae
|
| | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 149,723 | | | | | | 149,723 | | |
(In Thousands)
|
| |
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro
Forma Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustment |
| | | | |
Pro
Forma Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | |
Dividends payable
|
| | | | 33,564 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 33,564 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 33,564 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 33,564 | | | | | | 33,564 | | |
Accounts payable and other
accrued liabilities |
| | | | 189,194 | | | | | | 553 | | | | | | 20,301 | | | |
a, b,
d, f, g |
| | | | — | | | | | | | | | 210,048 | | | | | | 258 | | | | | | 9,991 | | | |
a, b,
d, f, g |
| | | | — | | | | | | | | | 199,443 | | | | | | 42 | | | | | | 1,329 | | | |
a, f
|
| | | | (485) | | | |
C5
|
| | | | 190,080 | | | | | | 221,183 | | |
Participation sold
|
| | | | — | | | | | | — | | | | | | 64,855 | | | |
a
|
| | | | — | | | | | | | | | 64,855 | | | | | | — | | | | | | 29,523 | | | |
a
|
| | | | — | | | | | | | | | 29,523 | | | | | | — | | | | | | 3,218 | | | |
a
|
| | | | — | | | | | | | | | 3,218 | | | | | | 97,596 | | |
Distributions payable
|
| | | | — | | | | | | 9,006 | | | | | | (9,006) | | | |
f
|
| | | | — | | | | | | | | | — | | | | | | 4,590 | | | | | | (4,590) | | | |
f
|
| | | | — | | | | | | | | | — | | | | | | 444 | | | | | | (444) | | | |
f
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Due to related parties
|
| | | | — | | | | | | 25,337 | | | | | | (25,337) | | | |
d
|
| | | | — | | | | | | | | | — | | | | | | 18,062 | | | | | | (18,062) | | | |
d
|
| | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | |
Management fee payable
|
| | | | — | | | | | | 2 | | | | | | (2) | | | |
g
|
| | | | — | | | | | | | | | — | | | | | | 3 | | | | | | (3) | | | |
g
|
| | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | |
Total Liabilities
|
| | | $ | 8,026,727 | | | | | $ | 34,898 | | | | | $ | 160,797 | | | | | | | | $ | — | | | | | | | | $ | 8,222,422 | | | | | $ | 22,913 | | | | | $ | 66,144 | | | | | | | | $ | — | | | | | | | | $ | 8,115,784 | | | | | $ | 486 | | | | | $ | 9,544 | | | | | | | | $ | (485) | | | | | | | | $ | 8,036,272 | | | | | $ | 8,321,024 | | |
Preferred stock Series C, liquidation preference $25.00 per share
|
| | | | 8,361 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 8,361 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 8,361 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 8,361 | | | | | | 8,361 | | |
Commitments & contingencies
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock Series E, liquidation preference $25.00 per share
|
| | | | 111,378 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 111,378 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 111,378 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 111,378 | | | | | | 111,378 | | |
Common stock, $0.0001 par
value, 500,000,000 shares authorized |
| | | | 7 | | | | | | — | | | | | | — | | | | | | | | | 2 | | | |
C2
|
| | | | 9 | | | | | | — | | | | | | — | | | | | | | | | 1 | | | |
C2
|
| | | | 8 | | | | | | — | | | | | | — | | | | | | | | | — | | | |
C2
|
| | | | 7 | | | | | | 10 | | |
Additional paid-in capital
|
| | | | 1,115,471 | | | | | | — | | | | | | — | | | | | | | | | 304,672 | | | |
C2-C4
|
| | | | 1,420,143 | | | | | | — | | | | | | — | | | | | | | | | 140,355 | | | |
C2-C4
|
| | | | 1,255,826 | | | | | | — | | | | | | — | | | | | | | | | 15,643 | | | |
C2- C5
|
| | | | 1,131,114 | | | | | | 1,576,141 | | |
Retained earnings (deficit)
|
| | | | (10,395) | | | | | | — | | | | | | — | | | | | | | | | (21,222) | | | |
C1, C4
|
| | | | (31,617) | | | | | | — | | | | | | — | | | | | | | | | (9,778) | | | |
C1, C4
|
| | | | (20,173) | | | | | | — | | | | | | — | | | | | | | | | (1,066) | | | |
C1, C4
|
| | | | (11,461) | | | | | | (42,461) | | |
Accumulated other comprehensive income (loss)
|
| | | | (6,276) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (6,276) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (6,276) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (6,276) | | | | | | (6,276) | | |
Members’ Equity / Partners’
Capital |
| | | | — | | | | | | 368,030 | | | | | | — | | | | | | | | | (368,030) | | | |
C2, C3
|
| | | | — | | | | | | 169,542 | | | | | | — | | | | | | | | | (169,542) | | | |
C2, C3
|
| | | | — | | | | | | 18,493 | | | | | | — | | | | | | | | | (18,493) | | | |
C2, C3
|
| | | | — | | | | | | — | | |
Total Ready Capital Corporation equity
|
| | | | 1,210,185 | | | | | | 368,030 | | | | | | — | | | | | | | | | (84,578) | | | | | | | | | 1,493,637 | | | | | | 169,542 | | | | | | — | | | | | | | | | (38,964) | | | | | | | | | 1,340,763 | | | | | | 18,493 | | | | | | — | | | | | | | | | (3,916) | | | | | | | | | 1,224,762 | | | | | | 1,638,792 | | |
Non-controlling interests
|
| | | | 19,125 | | | | | | — | | | | | | 10,136 | | | |
a
|
| | | | (342) | | | |
C1,C4
|
| | | | 28,919 | | | | | | — | | | | | | 144 | | | |
a
|
| | | | (156) | | | |
C1, C4
|
| | | | 19,113 | | | | | | — | | | | | | 34 | | | |
a
|
| | | | (18) | | | |
C1, C4
|
| | | | 19,141 | | | | | | 28,923 | | |
Total Stockholders’ Equity
|
| | | $ | 1,229,310 | | | | | $ | 368,030 | | | | | $ | 10,136 | | | | | | | | $ | (84,920) | | | | | | | | $ | 1,522,556 | | | | | $ | 169,542 | | | | | $ | 144 | | | | | | | | $ | (39,120) | | | | | | | | $ | 1,359,876 | | | | | $ | 18,493 | | | | | $ | 34 | | | | | | | | $ | (3,934) | | | | | | | | $ | 1,243,903 | | | | | $ | 1,667,715 | | |
Total Liabilities, Redeemable
Preferred Stock, and Stockholders’ Equity |
| | | $ | 9,264,398 | | | | | $ | 402,928 | | | | | $ | 170,933 | | | | | | | | $ | (84,920) | | | | | | | | $ | 9,753,339 | | | | | $ | 192,455 | | | | | $ | 66,288 | | | | | | | | $ | (39,120) | | | | | | | | $ | 9,484,021 | | | | | $ | 18,979 | | | | | $ | 9,578 | | | | | | | | $ | (4,419) | | | | | | | | $ | 9,288,536 | | | | | $ | 9,997,100 | | |
Common shares
outstanding |
| | | | 72,919,824 | | | | | | — | | | | | | — | | | | | | | | | 20,070,940 | | | | | | | | | 92,990,764 | | | | | | — | | | | | | — | | | | | | | | | 9,246,197 | | | | | | | | | 82,166,021 | | | | | | — | | | | | | — | | | | | | | | | 1,008,550 | | | | | | | | | 73,928,374 | | | | | | 103,245,511 | | |
Book value per common
share |
| | | | 15.07 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 14.86 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 14.96 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 15.06 | | | | | | 14.79 | | |
|
(In Thousands, except
share data) |
| |
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC Offshore
(Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Interest income
|
| | | $ | 281,554 | | | | | $ | — | | | | | $ | 34,985 | | | |
a
|
| | | $ | — | | | | | | | | $ | 316,539 | | | | | $ | — | | | | | $ | 15,432 | | | |
a
|
| | | $ | — | | | | | | | | $ | 296,986 | | | | | $ | — | | | | | $ | 1,975 | | | |
a
|
| | | $ | — | | | | | | | | $ | 283,529 | | | | | $ | 333,946 | | |
Interest expense
|
| | | | (156,312) | | | | | | — | | | | | | (6,929) | | | |
a
|
| | | | — | | | | | | | | | (163,241) | | | | | | — | | | | | | (3,163) | | | |
a
|
| | | | — | | | | | | | | | (159,475) | | | | | | — | | | | | | (485) | | | |
a
|
| | | | — | | | | | | | | | (156,797) | | | | | | (166,889) | | |
Net interest income
before provision for loan losses |
| | | $ | 125,242 | | | | | $ | — | | | | | $ | 28,056 | | | | | | | | $ | — | | | | | | | | $ | 153,298 | | | | | $ | — | | | | | $ | 12,269 | | | | | | | | $ | — | | | | | | | | $ | 137,511 | | | | | $ | — | | | | | $ | 1,490 | | | | | | | | $ | — | | | | | | | | $ | 126,732 | | | | | $ | 167,057 | | |
Recovery of (provision
for) loan losses |
| | | | (7,088) | | | | | | — | | | | | | (2,192) | | | |
a, h
|
| | | | — | | | | | | | | | (9,280) | | | | | | — | | | | | | (973) | | | |
a, h
|
| | | | — | | | | | | | | $ | (8,061) | | | | | | — | | | | | | (104) | | | |
a, h
|
| | | | — | | | | | | | | | (7,192) | | | | | | (10,357) | | |
Net interest income after recovery of (provision for) loan losses
|
| | | $ | 118,154 | | | | | $ | — | | | | | $ | 25,864 | | | | | | | | $ | — | | | | | | | | $ | 144,018 | | | | | $ | — | | | | | $ | 11,296 | | | | | | | | $ | — | | | | | | | | $ | 129,450 | | | | | $ | — | | | | | $ | 1,386 | | | | | | | | $ | — | | | | | | | | $ | 119,540 | | | | | $ | 156,700 | | |
Non-interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage
banking activities |
| | | $ | 115,369 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 115,369 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 115,369 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 115,369 | | | | | $ | 115,369 | | |
Net realized gain on
financial instruments and real estate owned |
| | | | 49,239 | | | | | | (2,366) | | | | | | — | | | | | | | | | — | | | | | | | | | 46,873 | | | | | | (1,093) | | | | | | — | | | | | | | | | — | | | | | | | | | 48,146 | | | | | | (118) | | | | | | (27) | | | |
a
|
| | | | — | | | | | | | | | 49,094 | | | | | | 45,635 | | |
Net unrealized gain (loss) on financial instruments
|
| | | | 31,296 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,296 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,296 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,296 | | | | | | 31,296 | | |
Servicing income
|
| | | | 37,806 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 37,806 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 37,806 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 37,806 | | | | | | 37,806 | | |
Income on purchased
future receivables, net |
| | | | 7,934 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 7,934 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 7,934 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 7,934 | | | | | | 7,934 | | |
Income (loss) on
unconsolidated joint ventures |
| | | | 6,100 | | | | | | 32,704 | | | | | | (32,704) | | | |
a
|
| | | | — | | | | | | | | | 6,100 | | | | | | 15,113 | | | | | | (15,113) | | | |
a
|
| | | | — | | | | | | | | | 6,100 | | | | | | 1,165 | | | | | | (1,165) | | | |
a
|
| | | | — | | | | | | | | | 6,100 | | | | | | 6,100 | | |
Other income
|
| | | | 5,557 | | | | | | — | | | | | | 7,012 | | | |
a
|
| | | | — | | | | | | | | | 12,569 | | | | | | — | | | | | | 4,463 | | | |
a
|
| | | | — | | | | | | | | | 10,020 | | | | | | 90 | | | | | | 606 | | | |
a
|
| | | | — | | | | | | | | | 6,253 | | | | | | 17,728 | | |
Total non-interest income
|
| | | $ | 253,301 | | | | | $ | 30,338 | | | | | $ | (25,692) | | | | | | | | $ | — | | | | | | | | $ | 257,947 | | | | | $ | 14,020 | | | | | $ | (10,650) | | | | | | | | $ | — | | | | | | | | $ | 256,671 | | | | | $ | 1,137 | | | | | $ | (586) | | | | | | | | $ | — | | | | | | | | $ | 253,852 | | | | | $ | 261,868 | | |
Non-interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee compensation
and benefits |
| | | $ | (71,584) | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | (71,584) | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | (71,584) | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | (71,584) | | | | | $ | (71,584) | | |
Allocated employee
compensation and benefits from related party |
| | | | (9,226) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (9,226) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (9,226) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (9,226) | | | | | | (9,226) | | |
Variable expenses on
residential mortgage banking activities |
| | | | (61,286) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (61,286) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (61,286) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (61,286) | | | | | | (61,286) | | |
Professional fees
|
| | | | (12,754) | | | | | | (733) | | | | | | (1,916) | | | |
a, i
|
| | | | — | | | | | | | | | (15,403) | | | | | | (340) | | | | | | (1,769) | | | |
a, i
|
| | | | — | | | | | | | | | (14,863) | | | | | | (83) | | | | | | (329) | | | |
a, i
|
| | | | — | | | | | | | | | (13,166) | | | | | | (17,924) | | |
(In Thousands, except
share data) |
| |
Ready Capital
Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC Offshore
(Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Management fees-related party
|
| | | | (8,061) | | | | | | (6) | | | | | | — | | | | | | | | | (2,785) | | | |
C6
|
| | | | (10,852) | | | | | | (9) | | | | | | — | | | | | | | | | (1,244) | | | |
C6
|
| | | | (9,314) | | | | | | — | | | | | | — | | | | | | | | | (137) | | | |
C6
|
| | | | (8,198) | | | | | | (12,242) | | |
Incentive fees – related
party |
| | | | (3,061) | | | | | | — | | | | | | — | | | | | | | | | (1,063) | | | |
C7
|
| | | | (4,124) | | | | | | — | | | | | | — | | | | | | | | | (486) | | | |
C7
|
| | | | (3,547) | | | | | | — | | | | | | (281) | | | |
a
|
| | | | 277 | | | |
C7
|
| | | | (3,065) | | | | | | (4,614) | | |
Loan servicing expense
|
| | | | (21,079) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (21,079) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (21,079) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (21,079) | | | | | | (21,079) | | |
Transaction related expenses
|
| | | | (10,202) | | | | | | — | | | | | | — | | | | | | | | | (19,359) | | | |
C1, C8
|
| | | | (29,561) | | | | | | — | | | | | | — | | | | | | | | | (8,919) | | | |
C1C8
|
| | | | (19,121) | | | | | | — | | | | | | — | | | | | | | | | (972) | | | |
C1
|
| | | | (11,174) | | | | | | (39,452) | | |
Other operating expenses
|
| | | | (45,600) | | | | | | — | | | | | | (42) | | | |
a
|
| | | | — | | | | | | | | | (45,642) | | | | | | — | | | | | | (41) | | | |
a
|
| | | | — | | | | | | | | | (45,641) | | | | | | — | | | | | | (29) | | | |
a, j
|
| | | | — | | | | | | | | | (45,629) | | | | | | (45,712) | | |
Administration expense
|
| | | | — | | | | | | (430) | | | | | | 430 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | (196) | | | | | | 196 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | (16) | | | | | | 16 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Organizational expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | (12) | | | | | | 12 | | | | | | | | | — | | | | | | | | | — | | | | | | (20) | | | | | | 20 | | | |
j
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Change in Unrealized
Depreciation from Real Estate Joint Ventures |
| | | | — | | | | | | (2,078) | | | | | | 2,078 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | (970) | | | | | | 970 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | (85) | | | | | | 85 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Total non-interest expense
|
| | | $ | (242,853) | | | | | $ | (3,247) | | | | | $ | 550 | | | | | | | | $ | (23,207) | | | | | | | | $ | (268,757) | | | | | $ | (1,527) | | | | | $ | (632) | | | | | | | | $ | (10,649) | | | | | | | | $ | (255,661) | | | | | $ | (204) | | | | | $ | (518) | | | | | | | | $ | (832) | | | | | | | | $ | (244,407) | | | | | $ | (283,119) | | |
Income before
provision for income taxes |
| | | $ | 128,602 | | | | | $ | 27,091 | | | | | | 722 | | | | | | | | $ | (23,307) | | | | | | | | $ | 133,208 | | | | | $ | 12,493 | | | | | $ | 14 | | | | | | | | $ | (10,649) | | | | | | | | $ | 130,460 | | | | | $ | 933 | | | | | $ | 282 | | | | | | | | $ | (832) | | | | | | | | $ | 128,985 | | | | | $ | 135,449 | | |
Income tax provision
|
| | | | (22,216) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (22,216) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (22,216) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (22,216) | | | | | | (22,216) | | |
Net income
|
| | | $ | 106,386 | | | | | $ | 27,091 | | | | | $ | 722 | | | | | | | | $ | (23,207) | | | | | | | | $ | 110,992 | | | | | $ | 12,493 | | | | | $ | 14 | | | | | | | | $ | (10,649) | | | | | | | | $ | 108,244 | | | | | $ | 933 | | | | | $ | 282 | | | | | | | | $ | (832) | | | | | | | | $ | 106,769 | | | | | $ | 113,233 | | |
Less: Dividends on preferred stock
|
| | | | 5,504 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 5,504 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | $ | 5,504 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | $ | 5,504 | | | | | $ | 5,504 | | |
Less: Net income attributable to non-controlling interest
|
| | | | 1,859 | | | | | | — | | | | | | 722 | | | |
a
|
| | | | (374) | | | |
C1, C6-C8
|
| | | | 2,207 | | | | | | — | | | | | | 14 | | | |
a
|
| | | | (172) | | | |
C1, C6-C8
|
| | | | 1,701 | | | | | | — | | | | | | 282 | | | |
a
|
| | | | (14) | | | |
C1,C6-C8
|
| | | $ | 2,127 | | | | | $ | 2,317 | | |
Net income attributable
to Ready Capital Corporation |
| | | $ | 99,023 | | | | | $ | 27,091 | | | | | $ | — | | | | | | | | $ | (22,833) | | | | | | | | $ | 103,281 | | | | | $ | 12,493 | | | | | $ | — | | | | | | | | $ | (10,477) | | | | | | | | $ | 101,039 | | | | | $ | 933 | | | | | $ | — | | | |
a
|
| | | $ | (818) | | | | | | | | $ | 99,138 | | | | | $ | 105,412 | | |
Earnings per common
share-basic |
| | | $ | 1.47 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.19 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.33 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.47 | | | | | $ | 1.09 | | |
Earnings per common
share-diluted |
| | | $ | 1.46 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.19 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.33 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 1.46 | | | | | $ | 1.09 | | |
Weighted-average shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 66,606,749 | | | | | | — | | | | | | — | | | | | | | | | 20,070,940 | | | | | | | | | 86,677,689 | | | | | | — | | | | | | — | | | | | | | | | 9,246,197 | | | | | | | | | 75,852,946 | | | | | | — | | | | | | — | | | | | | | | | 1,008,550 | | | | | | | | | 67,615,299 | | | | | | 96,932,436 | | |
Diluted
|
| | | | 66,768,918 | | | | | | — | | | | | | — | | | | | | | | | 20,070,940 | | | | | | | | | 86,839,858 | | | | | | — | | | | | | — | | | | | | | | | 9,246,197 | | | | | | | | | 76,015,115 | | | | | | — | | | | | | — | | | | | | | | | 1,008,550 | | | | | | | | | 67,777,468 | | | | | | 97,094,605 | | |
(In Thousands, except share
data) |
| |
Ready
Capital Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustment |
| | | | |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Interest income
|
| | | | 258,636 | | | | | | — | | | | | | 42,957 | | | |
a
|
| | | | — | | | | | | | | | 301,593 | | | | | | — | | | | | | 19,950 | | | |
a
|
| | | | — | | | | | | | | | 278,586 | | | | | | — | | | | | | 1,945 | | | |
a
|
| | | | — | | | | | | | | | 260,581 | | | | | | 323,488 | | |
Interest expense
|
| | | | (175,481) | | | | | | — | | | | | | (4,026) | | | |
a
|
| | | | — | | | | | | | | | (179,507) | | | | | | — | | | | | | (6,369) | | | |
a
|
| | | | — | | | | | | | | | (181,850) | | | | | | — | | | | | | (703) | | | |
a
|
| | | | — | | | | | | | | | (176,184) | | | | | | (186,579) | | |
Net interest income before provision for loan losses
|
| | | | 83,155 | | | | | | — | | | | | | 38,931 | | | | | | | | | — | | | | | | | | | 122,086 | | | | | | — | | | | | | 13,581 | | | | | | | | | — | | | | | | | | | 96,736 | | | | | | — | | | | | | 1,242 | | | | | | | | | — | | | | | | | | | 84,397 | | | | | | 136,909 | | |
(Provision for) recovery of loan losses
|
| | | | (34,726) | | | | | | — | | | | | | (3,226) | | | |
a, h
|
| | | | — | | | | | | | | | (37,952) | | | | | | — | | | | | | (1,599) | | | |
a, h
|
| | | | — | | | | | | | | | (36,325) | | | | | | — | | | | | | (112) | | | |
a, h
|
| | | | — | | | | | | | | | (34,838) | | | | | | (39,663) | | |
Net interest income after
(provision for) recovery of loan losses |
| | | | 48,429 | | | | | | — | | | | | | 35,705 | | | | | | | | | — | | | | | | | | | 84,134 | | | | | | — | | | | | | 11,982 | | | | | | | | | — | | | | | | | | | 60,411 | | | | | | — | | | | | | 1,130 | | | | | | | | | — | | | | | | | | | 49,559 | | | | | | 97,246 | | |
Non-interest income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage banking activities
|
| | | | 252,720 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 252,720 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 252,720 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 252,720 | | | | | | 252,720 | | |
Net realized gain on financial
instruments and real estate owned |
| | | | 31,913 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,913 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,913 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 31,913 | | | | | | 31,913 | | |
Net unrealized gain (loss) on
financial instruments |
| | | | (48,101) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (48,101) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (48,101) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (48,101) | | | | | | (48,101) | | |
Servicing income, net
|
| | | | 38,594 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 38,594 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 38,594 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 38,594 | | | | | | 38,594 | | |
Income on purchased future
receivables, net |
| | | | 15,711 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 15,711 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 15,711 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 15,711 | | | | | | 15,711 | | |
Income (loss) on unconsolidated joint ventures
|
| | | | 2,404 | | | | | | 38,716 | | | | | | (38,716) | | | |
a
|
| | | | — | | | | | | | | | 2,404 | | | | | | 18,120 | | | | | | (18,120) | | | |
a
|
| | | | — | | | | | | | | | 2,404 | | | | | | 1,040 | | | | | | (1,040) | | | |
a
|
| | | | — | | | | | | | | | 2,404 | | | | | | 2,404 | | |
Other income
|
| | | | 41,516 | | | | | | — | | | | | | 5,163 | | | |
a
|
| | | | — | | | | | | | | | 46,679 | | | | | | — | | | | | | 6,550 | | | |
a
|
| | | | — | | | | | | | | | 48,066 | | | | | | 130 | | | | | | 671 | | | |
a
|
| | | | — | | | | | | | | | 42,317 | | | | | | 54,030 | | |
Total non-interest income
|
| | | | 334,757 | | | | | | 38,716 | | | | | | (33,553) | | | | | | | | | — | | | | | | | | | 339,920 | | | | | | 18,120 | | | | | | (11,570) | | | | | | | | | — | | | | | | | | | 341,307 | | | | | | 1,170 | | | | | | (369) | | | | | | | | | — | | | | | | | | | 335,558 | | | | | | 347,271 | | |
Non-interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee compensation and
benefits |
| | | | (91,920) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (91,920) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (91,920) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (91,920) | | | | | | (91,920) | | |
Allocated employee
compensation and benefits from related party |
| | | | (7,000) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (7,000) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (7,000) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (7,000) | | | | | | (7,000) | | |
Variable expenses on residential mortgage banking activities
|
| | | | (114,510) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (114,510) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (114,510) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (114,510) | | | | | | (114,510) | | |
Professional fees
|
| | | | (13,360) | | | | | | (512) | | | | | | (4,763) | | | |
a, i
|
| | | | — | | | | | | | | | (18,635) | | | | | | (258) | | | | | | (2,235) | | | |
a, i
|
| | | | — | | | | | | | | | (15,853) | | | | | | (95) | | | | | | (320) | | | |
a, j
|
| | | | — | | | | | | | | | (13,775) | | | | | | (21,543) | | |
Management fees-related party
|
| | | | (10,682) | | | | | | (9) | | | | | | — | | | | | | | | | (3,630) | | | |
C6
|
| | | | (14,321) | | | | | | (12) | | | | | | — | | | | | | | | | (1,613) | | | |
C6
|
| | | | (12,307) | | | | | | — | | | | | | — | | | | | | | | | (131) | | | |
C6
|
| | | | (10,813) | | | | | | (16,077) | | |
Incentive fees-related party
|
| | | | (5,973) | | | | | | — | | | | | | — | | | | | | | | | (1,174) | | | |
C7
|
| | | | (7,147) | | | | | | — | | | | | | — | | | | | | | | | (626) | | | |
C7
|
| | | | (6,599) | | | | | | — | | | | | | (269) | | | |
a
|
| | | | 263 | | | |
C7
|
| | | | (5,979) | | | | | | (7,779) | | |
Loan servicing expense
|
| | | | (30,856) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (30,856) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (30,856) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (30,856) | | | | | | (30,856) | | |
Merger related expenses
|
| | | | (63) | | | | | | — | | | | | | — | | | | | | | | | (19,426) | | | |
C1 C8
|
| | | | (19,489) | | | | | | — | | | | | | — | | | | | | | | | (8,949) | | | |
C1 C8
|
| | | | (9,012) | | | | | | — | | | | | | — | | | | | | | | | (976) | | | |
C1 C8
|
| | | | (1,039) | | | | | | (29,414) | | |
Other operating expenses
|
| | | | (54,369) | | | | | | — | | | | | | (73) | | | |
a, j
|
| | | | — | | | | | | | | | (54,442) | | | | | | — | | | | | | (60) | | | |
a, j
|
| | | | — | | | | | | | | | (54,429) | | | | | | — | | | | | | (41) | | | |
a, j
|
| | | | — | | | | | | | | | (54,410) | | | | | | (54,543) | | |
Administration expense
|
| | | | — | | | | | | (626) | | | | | | 626 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | (291) | | | | | | 291 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | (28) | | | | | | 28 | | | |
i
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Organizational expenses
|
| | | | — | | | | | | (20) | | | | | | 20 | | | |
j
|
| | | | — | | | | | | | | | — | | | | | | (16) | | | | | | 16 | | | |
j
|
| | | | — | | | | | | | | | — | | | | | | (27) | | | | | | 27 | | | |
j
|
| | | | — | | | | | | | | | — | | | | | | — | | |
(In Thousands, except share
data) |
| |
Ready
Capital Corporation (Accounting Acquirer) |
| |
MREC
(Accounting Acquiree) |
| |
MREC
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC TE
(Accounting Acquiree) |
| |
MREC TE
Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| |
MREC
Offshore (Accounting Acquiree) |
| |
MREC
Offshore Financial Statement Adjustments (B) |
| | | | |
Transaction
Accounting Adjustment |
| | | | |
Pro Forma
Combined |
| |
Total
Combined |
| ||||||||||||||||||||||||||||||||||||||||||
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | — | | | | | | (3,046) | | | | | | 3,046 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | (1,593) | | | | | | 1,593 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | (84) | | | | | | 84 | | | |
h
|
| | | | — | | | | | | | | | — | | | | | | — | | |
Total non-interest expense
|
| | | | (328,733) | | | | | | (4,213) | | | | | | (1,144) | | | | | | | | | (24,230) | | | | | | | | | (358,320) | | | | | | (2,170) | | | | | | (395) | | | | | | | | | (11,188) | | | | | | | | | (342,486) | | | | | | (234) | | | | | | (491) | | | | | | | | | (844) | | | | | | | | | (330,302) | | | | | | (373,642) | | |
Income (loss) before
provision for income taxes |
| | | | 54,453 | | | | | | 34,504 | | | | | | 1,008 | | | | | | | | | (24,230) | | | | | | | | | 65,735 | | | | | | 15,950 | | | | | | 17 | | | | | | | | | (11,188) | | | | | | | | | 59,232 | | | | | | 936 | | | | | | 270 | | | | | | | | | (844) | | | | | | | | | 54,815 | | | | | | 70,876 | | |
Income tax (provision) benefit
|
| | | | (8,384) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (8,384) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (8,384) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | (8,384) | | | | | | (8,384) | | |
Net income (loss)
|
| | | | 46,069 | | | | | | 34,504 | | | | | | 1,008 | | | | | | | | | (24,230) | | | | | | | | | 57,351 | | | | | | 15,950 | | | | | | 17 | | | | | | | | | (11,188) | | | | | | | | | 50,848 | | | | | | 936 | | | | | | 270 | | | | | | | | | (844) | | | | | | | | | 46,431 | | | | | | 62,492 | | |
Less: Net income (loss) attributable to non-controlling interest
|
| | | | 1,199 | | | | | | — | | | | | | 1,008 | | | |
a
|
| | | | (418) | | | |
C1 C6 C7 C8
|
| | | | 1,789 | | | | | | — | | | | | | 17 | | | |
a
|
| | | | (194) | | | |
C1 C6 C7 C8
|
| | | | 1,022 | | | | | | — | | | | | | 270 | | | |
a
|
| | | | (13) | | | |
C1
C6 C7 C8 |
| | | | 1,456 | | | | | | 1,869 | | |
Net income (loss) attributable
to Ready Capital Corporation |
| | | | 44,870 | | | | | | 34,504 | | | | | | — | | | | | | | | | (23,812) | | | | | | | | | 55,562 | | | | | | 15,950 | | | | |
|
—
|
| | | | | | | | (10,994) | | | | | | | | | 49,826 | | | | | | 936 | | | | | | — | | | | | | | | | (831) | | | | | | | | | 44,975 | | | | | | 60,623 | | |
Earnings (loss) per common share-basic
|
| | | | 0.81 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.75 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.79 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.82 | | | | | | 0.72 | | |
Earnings (loss) per common share-diluted
|
| | | | 0.81 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.75 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.79 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | 0.82 | | | | | | 0.72 | | |
Weighted-average shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
—
|
| |
Basic
|
| | | | 53,736,523 | | | | | | — | | | | | | — | | | | | | | | | 20,070,940 | | | | | | | | | 73,807,463 | | | | | | — | | | | | | — | | | | | | | | | 9,246,197 | | | | | | | | | 62,982,720 | | | | | | — | | | | | | — | | | | | | | | | 1,008,550 | | | | | | | | | 54,745,073 | | | | | | 84,062,210 | | |
Diluted
|
| | | | 53,818,378 | | | | | | — | | | | | | — | | | | | | | | | 20,070,940 | | | | | | | | | 73,889,318 | | | | | | — | | | | | | — | | | | | | | | | 9,246,197 | | | | | | | | | 63,064,575 | | | | | | — | | | | | | — | | | | | | | | | 1,008,550 | | | | | | | | | 54,826,928 | | | | | | 84,144,065 | | |
|
| | |
Calculation of Preliminary Estimated Bargain
Purchase Gain (in thousands, except share and per share data) |
| |||
Fair value of net assets acquired
|
| | | $ | 447,541 | | |
Class B Common Stock to be issued
|
| | | | 30,325,687 | | |
Fair value of Class B Common Stock as of December 31, 2021(1)
|
| | | $ | 14.65 | | |
Estimated total consideration transferred based on fair value of Class B Common Stock to be issued and CERs(2)
|
| | | $ | 444,366 | | |
Bargain purchase gain
|
| | | $ | 3,175 | | |
| | |
Incentive and Management fees for the
nine months ended September 30, 2021 |
| |
Incentive and Management fees under
the Ready Capital Management Agreement for the nine months ended September 30, 2021 |
| ||||||
MREC
|
| | | | 6,751 | | | | | | 3,916 | | |
MREC TE
|
| | | | 3,065 | | | | | | 1,767 | | |
MREC Offshore
|
| | | | 281 | | | | | | 139 | | |
Total
|
| | | | 10,097 | | | | | | 5,822 | | |
| | |
Incentive and Management fees for the
twelve months ended December 31, 2020 |
| |
Incentive and Management fees under
the Ready Capital Management Agreement for the twelve months ended December 31, 2020 |
| ||||||
MREC
|
| | | | 8,599 | | | | | | 4,916 | | |
MREC TE
|
| | | | 3,913 | | | | | | 2,300 | | |
MREC Offshore
|
| | | | 269 | | | | | | 134 | | |
Total
|
| | | | 12,781 | | | | | | 7,350 | | |
(in thousands, other than per share data)
|
| |
20%
Decrease |
| |
10%
Decrease |
| |
Current Share
Price |
| |
10%
Increase |
| |
20%
Increase |
| |||||||||||||||
Price per share of Common Stock
|
| | | $ | 11.72 | | | | | $ | 13.19 | | | | | $ | 14.65 | | | | | $ | 16.12 | | | | | $ | 17.58 | | |
Total consideration transferred
|
| | | $ | 355,493 | | | | | $ | 399,929 | | | | | $ | 444,366 | | | | | $ | 488,803 | | | | | $ | 533,239 | | |
Bargain purchase gain (goodwill)
|
| | | $ | 92,048 | | | | | $ | 47,612 | | | | | $ | 3,175 | | | | | $ | (41,262) | | | | | $ | (85,698) | | |
| | |
Page(s)
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| Schedules: | | | | |
|
Schedule A:
Example Mosaic Book Value Schedule
|
| | ||
|
Schedule B:
Example Parent Book Value Schedule
|
| | ||
| Exhibits: | | | | |
|
Exhibit A:
Form of Interest Exchange Agreement
|
| | ||
|
Exhibit B:
Form of Contingent Equity Rights Agreement
|
| | ||
|
Exhibit C:
Form of Parent Articles Supplementary
|
| |
|
If to any Mosaic Party:
|
| |
MREC Management, LLC
4500 Park Granada, Suite 204 Calabasas, CA 91302 Attention: Ethan Penner Email: ep@mosaicrei.com, |
|
| with a copy to: | | |
Sheppard, Mullin, Richter & Hampton LLP
30 Rockefeller Plaza New York, NY 10112 Attention: Greg Grigorian Email: ggrigorian@sheppardmullin.com |
|
|
If to any Parent Party:
|
| |
Ready Capital Corporation
1251 Avenue of the Americas, 50th Floor New York, NY 10020 Attention: Andrew Ahlborn Email: aahlborn@waterfallam.com |
|
| with a copy to: | | |
Alston & Bird LLP
90 Park Avenue, New York, NY 10016 Attention: Michael Kessler, David Brown Email: michael.kessler@alston.com, david.brown@alston.com |
|
Mosaic Adjusted Book Value ($ in thousands)
|
| | | | | | |
Mosaic Funds Aggregate Combined Consolidated Members’ Equity
|
| | | $ | 552,517 | | |
Minus: Book Value of Assets of Mosaic Offshore Entities Not Held in MREC IIS
|
| | | | [(0)] | | |
Minus: Mosaic Transaction Expenses: | | | | | | | |
Pro rata share of Mosaic Manager Compensation
|
| | | | [(7,485)] | | |
Mosaic Transaction Expenses other than pro rata share of Mosaic Manager
Compensation |
| | | | [(5,000)] | | |
Total Mosaic Transaction Expenses:
|
| | | | [(12,485)] | | |
Mosaic Adjusted Book Value
|
| | | $ | 540,032 | | |
Minus: Discount Amount
|
| | | | (98,900) | | |
Plus or Minus: Adjustment Amount
|
| | | | [(0)] | | |
Parent Adjusted Book Value ($ in thousands, except share and per share data)
|
| | | | | | |
Parent Shareholders’ Equity
|
| | | $ | 1,288,383 | | |
Less: Non-Controlling Interest
|
| | | | (18,857) | | |
Less: Goodwill
|
| | | | (18,578) | | |
Less: Preferred Equity
|
| | | | (213,241) | | |
Parent Adjusted Book Value
|
| | | $ | 1,037,707 | | |
Parent Existing Shares
|
| | | | 71,385,858 | | |
Parent Adjusted Book Value Per Share
|
| | | $ | 14.54 | | |
| ATTEST: | | |
READY CAPITAL CORPORATION
|
|
|
Name: Andrew Ahlborn
Title: Chief Financial Officer |
| |
By: (SEAL)
Name: Thomas E. Capasse
Title: Chief Executive Officer |
|
| | | | Very truly yours, | |
| | | |
|
|
| | | | WELLS FARGO SECURITIES, LLC | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | |
| | | | | F-58 | | | |
| | | | | F-59 | | | |
| | | | | F-60 | | | |
| | | | | F-63 | | | |
| | | | | F-64 | | | |
| | | | | F-65 | | | |
| | | | | F-66 | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $375,244,370)
|
| | | $ | 372,800,990 | | |
|
Cash
|
| | | | 1,726,295 | | |
|
Due from related parties
|
| | | | 20,854,418 | | |
|
Distributions receivable
|
| | | | 7,546,526 | | |
|
Total Assets
|
| | | | 402,928,229 | | |
| Liabilities | | | | | | | |
|
Due to related parties
|
| | | | 25,337,130 | | |
|
Distributions payable
|
| | | | 9,006,781 | | |
|
Accounts payable
|
| | | | 552,585 | | |
|
Management fees payable
|
| | | | 2,143 | | |
|
Total Liabilities
|
| | | | 34,898,639 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 368,029,590 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 402,928,229 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 7,446,069 | | | | | $ | 4,320,563 | | | | | | 1.2% | | |
MREC Domestic REIT Holdings, LLC(1)
|
| | | | 294,102,737 | | | | | | 293,147,143 | | | | | | 79.7% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 52,219,319 | | | | | | 53,592,581 | | | | | | 14.6% | | |
MREC U2 Asset Pool, LLC(1)
|
| | | | 21,476,245 | | | | | | 21,740,703 | | | | | | 5.9% | | |
Total investments in real estate joint ventures
|
| | | $ | 375,244,370 | | | | | $ | 372,800,990 | | | | | | 98.7% | | |
Investments in
Preferred Equity |
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| | |||||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Mosaic ECI Tranche III,
LLC(4) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | $ | 5,623,766 | | | | | $ | 5,623,766 | | | | | | 1.5% | | | | ||
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 7,232,980 | | | | | | 7,234,989 | | | | | | 2.0% | | | | ||
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Mosaic Marbach Apartments, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 3,999,243 | | | | | | 4,009,169 | | | | | | 1.1% | | | | ||
Mosaic Hawk Ridge Investor, LLC(4)
|
| | Winston Salem, NC | | |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 2,234,669 | | | | | | 2,240,603 | | | | | | 0.6% | | | | ||
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 2,746,991 | | | | | | 2,755,636 | | | | | | 0.7% | | | | ||
Mosaic VL Investor, LLC(4)
|
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 17,998,494 | | | | | | 18,152,018 | | | | | | 4.9% | | | | ||
MREC Sunbelt Porfolio
Sub-Pool 1, LLC(4) |
| | Mission, TX | | |
11/10/20
|
| |
N/A(6)
|
| |
12.00%
|
| | | | 30,579,988 | | | | | | 30,934,503 | | | | | | 8.4% | | | | | |
| | | Corpus Christi, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | Southaven, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Mosaic Aetna Springs PE, LLC(5)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(6)
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 19,185,343 | | | | | | 19,204,911 | | | | | | 5.2% | | | | ||
Total
|
| | | | | | | | | | | | | | | $ | 89,601,474 | | | | | $ | 90,155,595 | | | | | | 24.4% | | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Members’ Equity |
| | | | | |||||||||||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | $ | 750,063 | | | | | $ | 750,063 | | | | | $ | 750,063 | | | | | $ | 750,063 | | | | | | 0.2% | | | | | | | ||||||||
Mosaic North Bergen,
LLC(2) |
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR +
6.75% or 9.15% |
| | | | 35,669,102 | | | | | | 33,530,497 | | | | | | 33,589,499 | | | | | | 33,530,497 | | | | | | 9.1% | | | | | | | ||||||||
Mosaic Sovereign Town Center,
LLC(2) |
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR
plus 8.20% or 9.20% |
| | | | 36,874,139 | | | | | | 3,598,933 | | | | | | 3,529,311 | | | | | | 3,598,933 | | | | | | 1.0% | | | | | | | ||||||||
Subtotal
|
| | | | | | | | | | | | | | | | 73,293,304 | | | | | | 37,879,493 | | | | | | 37,868,873 | | | | | | 37,879,493 | | | | | | 10.3% | | | | | | | | | | | | | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Mosaic Sacramento Hotel,
LLC(2) |
| |
Sacramento, CA
|
| |
7/24/18
|
| |
10/23/21
|
| |
Greater of LIBOR +
9.89% or 10.89%(7) |
| | | | 11,921,835 | | | | | | 11,863,372 | | | | | | 11,863,372 | | | | | | 11,863,372 | | | | | | 3.2% | | | | | | | | | ||||||
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 11,568,357 | | | | | | 11,543,469 | | | | | | 11,395,436 | | | | | | 11,543,469 | | | | | | 3.1% | | | | | | | ||||||||
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 6,941,014 | | | | | | 6,931,713 | | | | | | 6,931,713 | | | | | | 6,931,713 | | | | | | 1.9% | | | | | | | ||||||||
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR +
9.75% or 11.50%(7) |
| | | | 16,366,012 | | | | | | 10,786,668 | | | | | | 10,770,569 | | | | | | 10,786,668 | | | | | | 2.9% | | | | | | | | | ||||||
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR +
8.25% or 9.25% |
| | | | 15,167,402 | | | | | | 15,101,853 | | | | | | 15,051,040 | | | | | | 15,101,853 | | | | | | 4.1% | | | | | | | ||||||||
Mosaic Park City Resort,
LLC(2) |
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR +
7.56% or 9.99% |
| | | | 49,289,364 | | | | | | 33,631,578 | | | | | | 33,509,419 | | | | | | 33,631,578 | | | | | | 9.1% | | | | | | | ||||||||
Mosaic Portland Hotel,
LLC(2) |
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR +
8.50% or 11.00% |
| | | | 295,635,802 | | | | | | 39,846,094 | | | | | | 38,838,924 | | | | | | 39,846,094 | | | | | | 10.8% | | | | | | | ||||||||
Subtotal
|
| | | | | | | | | | | | | | | | 406,889,786 | | | | | | 129,704,747 | | | | | | 128,360,473 | | | | | | 129,704,747 | | | | | | 35.1% | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Mosaic Metro Air Park, LLC(2)
|
| |
Sacramento, CA
|
| |
2/28/18
|
| |
12/31/21
|
| |
11.00%(3)
|
| | | | 11,059,796 | | | | | | 8,033,671 | | | | | | 8,033,671 | | | | | | 8,033,671 | | | | | | 2.2% | | | | | | | ||||||||
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR +
7.75% or 9.60% |
| | | | 5,430,701 | | | | | | 5,180,328 | | | | | | 5,180,311 | | | | | | 5,180,328 | | | | | | 1.4% | | | | | | | ||||||||
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR +
8.00% or 10.02% |
| | | | 96,402,979 | | | | | | 44,550,288 | | | | | | 44,401,733 | | | | | | 44,550,288 | | | | | | 12.1% | | | | | | | ||||||||
Mosaic Retreat, LLC(2)
|
| |
Midway City, CA
|
| |
6/10/19
|
| |
1/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 5,579,012 | | | | | | 5,461,039 | | | | | | 5,584,764 | | | | | | 5,461,039 | | | | | | 1.5% | | | | | | | ||||||||
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 35,347,759 | | | | | | 27,133,873 | | | | | | 27,062,912 | | | | | | 27,133,873 | | | | | | 7.4% | | | | | | | ||||||||
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
6.25% or 8.75% |
| | | | 8,692,335 | | | | | | 8,299,139 | | | | | | 8,299,139 | | | | | | 8,299,139 | | | | | | 2.3% | | | | | | | ||||||||
Mosaic Merced, LLC(2)
|
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
7.25% or 9.35% |
| | | | 44,184,699 | | | | | | 33,814,490 | | | | | | 33,922,748 | | | | | | 33,814,490 | | | | | | 9.2% | | | | | | | ||||||||
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR +
4.75% or 6.40% |
| | | | 7,712,238 | | | | | | 7,684,929 | | | | | | 7,656,445 | | | | | | 7,684,929 | | | | | | 2.1% | | | | | | | ||||||||
Subtotal
|
| | | | | | | | | | | | | | | | 214,409,519 | | | | | | 140,157,757 | | | | | | 140,141,723 | | | | | | 140,157,757 | | | | | | 38.2% | | | | | | | ||||||||
Total
|
| | | | | | | | | | | | | | | $ | 694,592,609 | | | | | $ | 307,741,997 | | | | | $ | 306,371,069 | | | | | $ | 307,741,997 | | | | | | 83.6% | | | | | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| | | $ | 30,931,097 | | | | | $ | 22,179,112 | | | | | | 6.0% | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| | | | 25,844,407 | | | | | | 19,312,730 | | | | | | 5.2% | | |
Subtotal
|
| | | | | | | | | | 56,775,504 | | | | | | 41,491,842 | | | | | | 11.3% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 16,023,606 | | | | | | 16,308,956 | | | | | | 4.4% | | |
Subtotal
|
| | | | | | | | | | 16,023,606 | | | | | | 16,308,956 | | | | | | 4.4% | | |
Total
|
| | | $ | 72,799,110 | | | | | $ | 57,800,798 | | | | | | 15.7% | | | ||||||
Total investments held by investments in real estate joint ventures
|
| | | $ | 468,771,653 | | | | | $ | 455,698,390 | | | | | | 123.7% | | | ||||||
Other net liabilities of investments in real estate joint ventures
|
| | | $ | (93,527,283) | | | | | $ | (82,897,400) | | | | | | -22.5% | | | ||||||
Total investments in real estate joint ventures
|
| | | $ | 375,244,370 | | | | | $ | 372,800,990 | | | | | | | | |
| | |
2021
|
| |
2020
|
| ||||||
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 32,704,192 | | | | | $ | 28,183,996 | | |
Fund Expenses | | | | | | | | | | | | | |
Professional fees
|
| | | | 732,702 | | | | | | 334,794 | | |
Administration expense
|
| | | | 429,335 | | | | | | 472,925 | | |
Organizational expenses
|
| | | | — | | | | | | 20,202 | | |
Management fees
|
| | | | 6,252 | | | | | | 6,543 | | |
Total Fund Expenses
|
| | | | 1,168,289 | | | | | | 834,464 | | |
Net Investment Income
|
| | | | 31,535,903 | | | | | | 27,349,532 | | |
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (2,078,098) | | | | | | (2,710,279) | | |
Net Realized Loss from Real Estate Joint Ventures
|
| | | | (2,366,335) | | | | | | — | | |
Net Income
|
| | | $ | 27,091,470 | | | | | $ | 24,639,253 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class AR/CXR
Members |
| |
Class F
Members |
| |
Class M
Members |
| |
Class QC
Members |
| |
Total Members’
Equity |
| |||||||||||||||||||||
Members’ Equity, beginning of
period |
| | | $ | 3,416,487 | | | | | $ | 299,346,824 | | | | | $ | 46,239,316 | | | | | $ | 11,864,249 | | | | | $ | 326,379 | | | | | $ | 409,700 | | | | | $ | 361,602,955 | | |
Net income
|
| | | | — | | | | | | 22,663,166 | | | | | | 3,484,416 | | | | | | 894,232 | | | | | | 18,632 | | | | | | 31,024 | | | | | | 27,091,470 | | |
Incentive allocation
|
| | | | 6,745,380 | | | | | | (5,665,318) | | | | | | (871,104) | | | | | | (201,202) | | | | | | — | | | | | | (7,756) | | | | | | — | | |
Distributions
|
| | | | (5,713,009) | | | | | | (14,394,390) | | | | | | (2,213,456) | | | | | | (587,254) | | | | | | (21,076) | | | | | | (19,702) | | | | | | (22,948,887) | | |
Contributions
|
| | | | — | | | | | | 2,760,938 | | | | | | 3,971 | | | | | | — | | | | | | 11,110 | | | | | | 3,541 | | | | | | 2,779,560 | | |
Redemptions
|
| | | | 474 | | | | | | (495,982) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (495,508) | | |
Members’ Equity, end
of period |
| | | $ | 4,449,332 | | | | | $ | 304,215,238 | | | | | $ | 46,643,143 | | | | | $ | 11,970,025 | | | | | $ | 335,045 | | | | | $ | 416,807 | | | | | $ | 368,029,590 | | |
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 27,091,470 | | | | | $ | 24,639,253 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Net investment income from real estate joint ventures
|
| | | | (32,704,192) | | | | | | (28,183,996) | | |
Change in unrealized depreciation from real estate joint ventures
|
| | | | 2,078,098 | | | | | | 2,710,279 | | |
Net realized loss from real estate joint ventures
|
| | | | 2,366,335 | | | | | | — | | |
Contributions to investments in real estate joint ventures
|
| | | | (96,419,903) | | | | | | (91,025,242) | | |
Distributions from investments in real estate joint ventures, net of change in distributions receivable
|
| | | | 111,579,061 | | | | | | 71,973,804 | | |
Amortization of organizational costs
|
| | | | — | | | | | | 20,202 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Due to related parties
|
| | | | (6,442,826) | | | | | | 6,390,985 | | |
Due from related parties
|
| | | | 8,675,739 | | | | | | 17,951,231 | | |
Accounts payable
|
| | | | 311,967 | | | | | | 34,617 | | |
Management fees payable
|
| | | | (570) | | | | | | (90) | | |
Net cash provided by operating activities
|
| | | | 16,535,179 | | | | | | 4,511,043 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Distributions, net of change in distributions payable
|
| | | | (20,353,339) | | | | | | (21,862,310) | | |
Contributions, net of change in contributions received in advance
|
| | | | 2,779,560 | | | | | | 35,049,907 | | |
Redemptions, net of change in redemptions payable
|
| | | | (705,360) | | | | | | (19,672,555) | | |
Net cash used in financing activities
|
| | | | (18,279,139) | | | | | | (6,484,958) | | |
Net decrease in cash during the period
|
| | | | (1,743,960) | | | | | | (1,973,915) | | |
Cash – beginning of period
|
| | | | 3,470,255 | | | | | | 2,286,623 | | |
Cash – end of period
|
| | | $ | 1,726,295 | | | | | $ | 312,708 | | |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 10.40%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
18%
|
|
| | | | | | |
Terminal cap rate
|
| |
7.75%
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$37.82 – 158.77 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 96,419,903 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Contributions to investments in real estate joint ventures
|
| | | $ | 91,025,242 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 25,494,136 | | |
|
Accrued preferred returns
|
| | | | 8,615,122 | | |
|
Other income
|
| | | | 6,738,916 | | |
|
Real estate operations, net
|
| | | | (50,135) | | |
|
Professional fees
|
| | | | (1,130,061) | | |
|
Interest expense
|
| | | | (6,811,854) | | |
|
Administration expense
|
| | | | (110,778) | | |
|
Organizational expenses
|
| | | | (41,154) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 32,704,192 | | |
|
Interest income
|
| | | $ | 28,066,829 | | |
|
Accrued preferred returns
|
| | | | 4,601,829 | | |
|
Other income
|
| | | | 411,923 | | |
|
Professional fees
|
| | | | (2,358,556) | | |
|
Interest expense
|
| | | | (2,423,647) | | |
|
Administration expense
|
| | | | (108,174) | | |
|
Organizational expenses
|
| | | | (6,208) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 28,183,996 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 78,181,866 | | | | | | 17 | | |
Northeast
|
| | | | 60,664,370 | | | | | | 13 | | |
Pacific
|
| | | | 230,190,496 | | | | | | 51 | | |
Southeast
|
| | | | 39,605,945 | | | | | | 9 | | |
Southwest
|
| | | | 47,055,713 | | | | | | 10 | | |
Total
|
| | | $ | 455,698,390 | | | | | | 100 | | |
Entity
|
| |
Description
|
| |
Due from
|
| |||
MREC International Incentive Split, LP
|
| | Investment related transactions | | | | $ | 2,821,678 | | |
Mosaic Real Estate Credit TE, LLC
|
| | Investment related transactions | | | | | 7,347,206 | | |
UA
|
| | Investment related transactions | | | | | 8,313,665 | | |
U2
|
| | Investment related transactions | | | | | 2,351,224 | | |
Manager
|
| |
Expenses paid on behalf of Manager
|
| | | | 4,069 | | |
Various entities
|
| | Professional fees | | | | | 16,576 | | |
| | | | | | | $ | 20,854,418 | | |
Entity
|
| |
Description
|
| |
Due to
|
| |||
MGA
|
| |
Investment related transactions
|
| | | $ | 24,398,209 | | |
NU
|
| |
Investment related transactions
|
| | | | 938,921 | | |
| | | | | | | $ | 25,337,130 | | |
Members’ Equity per Unit
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Members’ Equity per Unit, beginning of period
|
| | | $ | 1,118.89 | | | | | | 1,122.08 | | | | | | 1,009.02 | | | | | | 1,108.92 | | |
Net investment income before management fees and incentive
|
| | | | 98.13 | | | | | | 98.43 | | | | | | 87.83 | | | | | | 97.26 | | |
Net unrealized depreciation and realized loss from real estate joint ventures
|
| | | | (13.81) | | | | | | (13.86) | | | | | | (12.38) | | | | | | (13.71) | | |
Management fees
|
| | | | — | | | | | | — | | | | | | (19.02) | | | | | | — | | |
Incentive
|
| | | | (21.08) | | | | | | (19.03) | | | | | | — | | | | | | (20.89) | | |
Distributions
|
| | | | (53.56) | | | | | | (55.54) | | | | | | (63.98) | | | | | | (53.08) | | |
Members’ Equity per Unit, end of period
|
| | | $ | 1,128.57 | | | | | | 1,132.08 | | | | | | 1,001.47 | | | | | | 1,118.50 | | |
Total Return(1)
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Before incentive and management fees
|
| | | | 7.72% | | | | | | 7.72% | | | | | | 7.72% | | | | | | 7.72% | | |
After incentive and management fees
|
| | | | 5.75% | | | | | | 5.94% | | | | | | 5.73% | | | | | | 5.75% | | |
Ratios(2)
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.39% | | | | | | 0.39% | | | | | | 0.39% | | | | | | 0.39% | | |
Incentive
|
| | | | 2.50% | | | | | | 2.25% | | | | | | 0.00% | | | | | | 2.50% | | |
Management fees
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 2.51% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.89% | | | | | | 2.64% | | | | | | 2.90% | | | | | | 2.90% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 4.90% | | | | | | 4.90% | | | | | | 4.90% | | | | | | 4.90% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 7.80% | | | | | | 7.55% | | | | | | 7.80% | | | | | | 7.80% | | |
Net investment income, before incentive and management fees
|
| | | | 11.08% | | | | | | 11.06% | | | | | | 11.12% | | | | | | 11.08% | | |
Net investment income, after incentive and management fees
|
| | | | 8.58% | | | | | | 8.82% | | | | | | 8.61% | | | | | | 8.59% | | |
Members’ Equity per Unit
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Members’ Equity per Unit, beginning of period
|
| | | $ | 1,101.37 | | | | | | 1,103.95 | | | | | | 1,013.39 | | | | | | 1,091.54 | | |
Net investment income before management fees and incentive
|
| | | | 90.86 | | | | | | 91.10 | | | | | | 83.21 | | | | | | 90.08 | | |
Net unrealized depreciation from real estate joint ventures
|
| | | | (9.73) | | | | | | (9.81) | | | | | | (8.95) | | | | | | (9.65) | | |
Management fees
|
| | | | — | | | | | | — | | | | | | (19.18) | | | | | | — | | |
Incentive
|
| | | | (20.29) | | | | | | (18.30) | | | | | | — | | | | | | (20.11) | | |
Distributions
|
| | | | (48.01) | | | | | | (49.71) | | | | | | (58.65) | | | | | | (47.59) | | |
Members’ Equity per Unit, end of period
|
| | | $ | 1,114.20 | | | | | | 1,117.23 | | | | | | 1,009.82 | | | | | | 1,104.27 | | |
Total Return(1)
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Before incentive and management fees
|
| | | | 7.56% | | | | | | 7.56% | | | | | | 7.56% | | | | | | 7.56% | | |
After incentive and management fees
|
| | | | 5.62% | | | | | | 5.81% | | | | | | 5.56% | | | | | | 5.62% | | |
Ratios(2)
|
| |
Class A/CX/AR/CXR
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.32% | | | | | | 0.32% | | | | | | 0.32% | | | | | | 0.32% | | |
Incentive
|
| | | | 2.44% | | | | | | 2.20% | | | | | | 0.00% | | | | | | 2.43% | | |
Management fees
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.76% | | | | | | 2.52% | | | | | | 2.84% | | | | | | 2.77% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 1.91% | | | | | | 1.91% | | | | | | 1.91% | | | | | | 1.91% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 4.68% | | | | | | 4.44% | | | | | | 4.75% | | | | | | 4.67% | | |
Net investment income, before incentive and management fees
|
| | | | 10.67% | | | | | | 10.58% | | | | | | 10.30% | | | | | | 10.84% | | |
Net investment income, after incentive and management fees
|
| | | | 8.23% | | | | | | 8.39% | | | | | | 7.78% | | | | | | 8.41% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $356,431,938)
|
| | | $ | 358,432,990 | | |
|
Cash
|
| | | | 3,470,255 | | |
|
Due from related parties
|
| | | | 29,530,157 | | |
|
Distributions receivable
|
| | | | 8,813,925 | | |
|
Total Assets
|
| | | | 400,247,327 | | |
| Liabilities | | | | | | | |
|
Redemptions payable
|
| | | | 209,852 | | |
|
Due to related parties
|
| | | | 31,779,956 | | |
|
Distributions payable
|
| | | | 6,411,233 | | |
|
Accounts payable
|
| | | | 240,618 | | |
|
Management fees payable
|
| | | | 2,713 | | |
|
Total Liabilities
|
| | | | 38,644,372 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 361,602,955 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 400,247,327 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 7,525,447 | | | | | $ | 5,438,680 | | | | | | 70.9% | | |
MREC Domestic REIT Holdings, LLC(1)
|
| | | | 254,186,685 | | | | | | 256,272,820 | | | | | | 1.5% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 71,927,590 | | | | | | 73,591,794 | | | | | | 20.4% | | |
MREC U2 Asset Pool, LLC(1)
|
| | | | 22,792,216 | | | | | | 23,129,696 | | | | | | 6.4% | | |
Total investments in real estate joint ventures
|
| | | $ | 356,431,938 | | | | | $ | 358,432,990 | | | | | | 98.7% | | |
Investments in
Preferred Equity |
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred
Return Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II,
LLC(4) |
| | Orange Beach, AL | | |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 3,485,494 | | | | | | 3,485,494 | | | | | | 1.0% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(4) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 7,041,765 | | | | | | 7,041,765 | | | | | | 1.9% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 6,897,026 | | | | | | 6,907,621 | | | | | | 1.9% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartments, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 3,703,729 | | | | | | 3,728,286 | | | | | | 1.0% | | |
Mosaic Hawk Ridge Investor, LLC(4)
|
| | Winston Salem, NC | | |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 2,120,645 | | | | | | 2,133,242 | | | | | | 0.6% | | |
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 2,603,756 | | | | | | 2,620,487 | | | | | | 0.7% | | |
Mosaic VL Investor, LLC(4)
|
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 16,960,563 | | | | | | 17,137,906 | | | | | | 4.7% | | |
Mosaic Tex Ark Sunbelt,
LLC(4) |
| | Southaven, MS | | |
11/6/20
|
| |
N/A(7)
|
| |
12.00%
|
| | | | 6,045,158 | | | | | | 6,152,041 | | | | | | 1.7% | | |
MREC Sunbelt Porfolio Sub-Pool 1, LLC(4)
|
| | Mission, TX | | |
11/10/20
|
| |
N/A(7)
|
| |
12.00%
|
| | | | 58,071,406 | | | | | | 58,981,627 | | | | | | 16.3% | | |
| | | Corpus Christi, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE,
LLC(5) |
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(7)
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 19,294,504 | | | | | | 19,387,971 | | | | | | 5.4% | | |
Total
|
| | | | | | | | | | | | | | | $ | 126,224,046 | | | | | $ | 127,576,440 | | | | | | 35.3% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest
Rate |
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair
Value |
| |
% of
Members’ Equity |
| |||||||||||||||
Condominium Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | $ | 16,480 | | | | | $ | 1,309,902 | | | | | $ | 1,309,902 | | | | | $ | 1,309,902 | | | | | | 0.4% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
6/29/21
|
| |
Greater of LIBOR +
6.25% or 8.00%(8) |
| | | | 15,883,234 | | | | | | 13,623,204 | | | | | | 13,623,204 | | | | | | 13,623,204 | | | | | | 3.8% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR +
6.75% or 9.15% |
| | | | 8,995,097 | | | | | | 24,022,999 | | | | | | 24,134,781 | | | | | | 24,022,999 | | | | | | 6.6% | | |
Mosaic Sovereign Town
Center, LLC(2) |
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR
plus 8.20% or 9.20% |
| | | | 38,897,716 | | | | | | — | | | | | | (181,667) | | | | | | — | | | | | | 0.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 63,792,527 | | | | | | 38,956,105 | | | | | | 38,886,220 | | | | | | 38,956,105 | | | | | | 10.8% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| |
Sacramento, CA
|
| |
7/24/18
|
| |
7/23/21
|
| |
Greater of LIBOR +
9.89% or 10.89% |
| | | | 10,113,406 | | | | | | 6,756,680 | | | | | | 6,756,680 | | | | | | 6,756,680 | | | | | | 1.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 21,393,744 | | | | | | 21,364,327 | | | | | | 20,517,489 | | | | | | 21,364,327 | | | | | | 5.9% | | |
Mosaic Southlake,
LLC(2) |
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 7,001,589 | | | | | | 6,990,358 | | | | | | 6,990,358 | | | | | | 6,990,358 | | | | | | 1.9% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR +
9.75% or 11.50% |
| | | | 16,508,839 | | | | | | 6,631,193 | | | | | | 6,573,350 | | | | | | 6,631,193 | | | | | | 1.8% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR +
8.25% or 9.25% |
| | | | 15,299,768 | | | | | | 12,299,270 | | | | | | 12,189,615 | | | | | | 12,299,270 | | | | | | 3.4% | | |
Mosaic Ketchum Resort, LLC(2)
|
| | Ketchum, ID | | |
12/6/19
|
| |
12/5/22
|
| |
Greater of LIBOR +
9.00% or 11.25% |
| | | | 38,962,546 | | | | | | — | | | | | | (252,068) | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort, LLC(2)
|
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR +
7.56% or 9.99% |
| | | | 25,672,493 | | | | | | 13,905,873 | | | | | | 13,648,857 | | | | | | 13,905,873 | | | | | | 3.8% | | |
Mosaic Portland Hotel,
LLC(2) |
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR +
8.50% or 11.00% |
| | | | 298,215,824 | | | | | | 14,125,203 | | | | | | 12,680,432 | | | | | | 14,125,203 | | | | | | 3.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 433,168,209 | | | | | | 82,072,904 | | | | | | 79,104,713 | | | | | | 82,072,904 | | | | | | 22.6% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock,
LLC(2) |
| | Portland, OR | | |
12/29/17
|
| |
3/31/19(6)
|
| |
13.00%
|
| | | | 23,798,247 | | | | | | 22,484,966 | | | | | | 28,234,106 | | | | | | 22,484,966 | | | | | | 6.2% | | |
Mosaic Parkland,
LLC(2) |
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
Greater of LIBOR +
8.00% or 10.25% |
| | | | 1,620,738 | | | | | | 830,140 | | | | | | 818,797 | | | | | | 830,140 | | | | | | 0.2% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 25,418,985 | | | | | | 23,315,106 | | | | | | 29,052,903 | | | | | | 23,315,106 | | | | | | 6.4% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
Greater or LIBOR +
7.25% or 8.91% |
| | | | 10,696,872 | | | | | | 10,679,398 | | | | | | 10,679,398 | | | | | | 10,679,398 | | | | | | 3.0% | | |
Mosaic Metro Air Park,
LLC(2) |
| |
Sacramento, CA
|
| |
2/28/18
|
| |
2/29/21
|
| |
11.00% (9)
|
| | | | 11,156,315 | | | | | | 11,426,610 | | | | | | 11,426,610 | | | | | | 11,426,610 | | | | | | 3.2% | | |
Mosaic DTLA Parking,
LLC(2) |
| |
Los Angeles, CA
|
| |
6/26/19
|
| |
6/26/21
|
| |
Greater of LIBOR +
8.25% or 10.75% (9) |
| | | | 13,095,564 | | | | | | 11,946,063 | | | | | | 11,905,988 | | | | | | 11,946,063 | | | | | | 3.3% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR +
7.75% or 9.60% |
| | | | 8,719,571 | | | | | | 3,043,809 | | | | | | 3,044,061 | | | | | | 3,043,809 | | | | | | 0.8% | | |
Mosaic LV MF,
LLC(2) |
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR +
8.00% or 10.02% |
| | | | 97,244,290 | | | | | | 20,181,172 | | | | | | 19,910,022 | | | | | | 20,181,172 | | | | | | 5.6% | | |
Mosaic Retreat,
LLC(2) |
| |
Midway City, CA
|
| |
6/10/19
|
| |
7/1/21
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 5,627,700 | | | | | | 5,159,790 | | | | | | 5,268,120 | | | | | | 5,159,790 | | | | | | 1.4% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 35,656,240 | | | | | | 29,513,998 | | | | | | 29,351,492 | | | | | | 29,513,998 | | | | | | 8.2% | | |
Mosaic West Cheyenne,
LLC(2) |
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
Greater of LIBOR +
7.25% or 9.27% |
| | | | 9,108,549 | | | | | | 8,524,046 | | | | | | 8,508,590 | | | | | | 8,524,046 | | | | | | 2.4% | | |
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
9/1/21
|
| |
Greater of LIBOR +
6.25% or 8.75% |
| | | | 8,768,194 | | | | | | 8,011,650 | | | | | | 7,952,844 | | | | | | 8,011,650 | | | | | | 2.2% | | |
Merced Station(2)
|
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
7.25% or 9.35% |
| | | | 44,570,300 | | | | | | 6,980,940 | | | | | | 6,768,293 | | | | | | 6,980,940 | | | | | | 1.9% | | |
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR +
4.75% or 6.40% |
| | | | 7,779,543 | | | | | | 8,152,232 | | | | | | 8,060,720 | | | | | | 8,152,232 | | | | | | 2.3% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 252,423,138 | | | | | | 123,619,708 | | | | | | 122,876,138 | | | | | | 123,619,708 | | | | | | 34.3% | | |
Total
|
| | | | | | | | | | | | | | | $ | 774,802,859 | | | | | $ | 267,963,823 | | | | | $ | 269,919,974 | | | | | $ | 267,963,823 | | | | | | 74.1% | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Single Family Residence Development
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(3)
|
| | New York, NY | | |
6/4/15
|
| | | | 6,549,646 | | | | | | 5,234,530 | | | | | | 1.4% | | |
Subtotal
|
| | | | | | | | | | 6,549,646 | | | | | | 5,234,530 | | | | | | 1.4% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| | | | 26,069,952 | | | | | | 20,097,153 | | | | | | 5.6% | | |
Subtotal
|
| | | | | | | | | | 26,069,952 | | | | | | 20,097,153 | | | | | | 5.6% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 16,594,060 | | | | | | 16,539,543 | | | | | | 4.6% | | |
Subtotal
|
| | | | | | | | | | 16,594,060 | | | | | | 16,539,543 | | | | | | 4.6% | | |
Total
|
| | | | | | | | | $ | 49,213,658 | | | | | $ | 41,871,226 | | | | | | 11.6% | | |
Total investments held by investments
in real estate joint ventures |
| | | | | | | | | $ | 445,357,678 | | | | | $ | 437,411,489 | | | | | | 121.0% | | |
Other net liabilities of investments in
real estate joint ventures |
| | | | | | | | | $ | (88,925,740) | | | | | $ | (78,978,499) | | | | | | -21.8% | | |
Total investments in real estate joint ventures
|
| | | | | | | | | $ | 356,431,938 | | | | | $ | 358,432,990 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 38,716,051 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 511,877 | | |
|
Administration expense
|
| | | | 625,683 | | |
|
Organizational expenses
|
| | | | 20,202 | | |
|
Management fees
|
| | | | 8,586 | | |
|
Total Fund Expenses
|
| | | | 1,166,348 | | |
|
Net Investment Income
|
| | | | 37,549,703 | | |
|
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (3,046,202) | | |
|
Net Income
|
| | | $ | 34,503,501 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class R
Members |
| |
Class F
Members |
| |
Class M
Members |
| |
Class QC
Members |
| |
Total Members’
Equity |
| |||||||||||||||||||||
Members’ Equity, beginning of year
|
| | | $ | 1,665,922 | | | | | $ | 298,708,788 | | | | | $ | — | | | | | $ | 11,395,984 | | | | | $ | 406,249 | | | | | $ | 296,450 | | | | | $ | 312,473,393 | | |
Net income
|
| | | | — | | | | | | 33,263,470 | | | | | | — | | | | | | 1,176,204 | | | | | | 25,720 | | | | | | 38,107 | | | | | | 34,503,501 | | |
Incentive allocation
|
| | | | 8,590,036 | | | | | | (8,315,866) | | | | | | — | | | | | | (264,643) | | | | | | — | | | | | | (9,527) | | | | | | — | | |
Distributions
|
| | | | (6,828,529) | | | | | | (19,831,839) | | | | | | — | | | | | | (721,125) | | | | | | (27,610) | | | | | | (22,251) | | | | | | (27,431,354) | | |
Contributions
|
| | | | — | | | | | | 42,048,951 | | | | | | — | | | | | | 277,829 | | | | | | 22,020 | | | | | | 6,921 | | | | | | 42,355,721 | | |
Redemptions
|
| | | | (10,942) | | | | | | (287,364) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (298,306) | | |
Transfers resulting from redemption requests
|
| | | | — | | | | | | (46,239,316) | | | | | | 46,239,316 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Transfer of interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (100,000) | | | | | | 100,000 | | | | | | — | | |
Members’ Equity, end of year
|
| | | $ | 3,416,487 | | | | | $ | 299,346,824 | | | | | $ | 46,239,316 | | | | | $ | 11,864,249 | | | | | $ | 326,379 | | | | | $ | 409,700 | | | | | $ | 361,602,955 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 34,503,501 | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (38,716,051) | | |
|
Change in unrealized depreciation from real estate joint ventures
|
| | | | 3,046,202 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (170,961,723) | | |
|
Distributions from investments in real estate joint ventures, net of change in distributions receivable
|
| | | | 155,882,025 | | |
|
Amortization of organizational costs
|
| | | | 20,202 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | 16,451,677 | | |
|
Due from related parties
|
| | | | 7,479,150 | | |
|
Accounts payable
|
| | | | (55,453) | | |
|
Management fees payable
|
| | | | 617 | | |
|
Net cash provided by operating activities
|
| | | | 7,650,147 | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (27,377,670) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 40,583,710 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (19,672,555) | | |
|
Net cash used in financing activities
|
| | | | (6,466,515) | | |
|
Net increase in cash during the year
|
| | | | 1,183,632 | | |
|
Cash – beginning of year
|
| | | | 2,286,623 | | |
|
Cash – end of year
|
| | |
$
|
3,470,255
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 11.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.25% – 18.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 11.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Single Family Residence
Development |
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$806.12 PSF
|
|
|
Mixed-Use Development
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$93.09 PSF
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$39.02 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 170,961,723 | | |
|
Transfers in (out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 34,285,474 | | |
|
Accrued preferred returns
|
| | | | 7,248,878 | | |
|
Other income
|
| | | | 5,089,658 | | |
|
Professional fees
|
| | | | (3,680,652) | | |
|
Interest expense
|
| | | | (3,880,499) | | |
|
Administration expense
|
| | | | (338,692) | | |
|
Organizational expenses
|
| | | | (8,116) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 38,716,051 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 53,290,489 | | | | | | 12 | | |
Northeast
|
| | | | 58,771,527 | | | | | | 13 | | |
Pacific
|
| | | | 193,503,633 | | | | | | 45 | | |
Southeast
|
| | | | 52,949,719 | | | | | | 12 | | |
Southwest
|
| | | | 78,896,121 | | | | | | 18 | | |
Total
|
| | | $ | 437,411,489 | | | | | | 100 | | |
Entity
|
| |
Description
|
| |
Due from
|
| |||
Manager
|
| |
Expenses paid on behalf of Manager
|
| | | $ | 4,069 | | |
Mosaic Real Estate Credit Offshore, LP
|
| | Investment related transactions | | | | | 3,231,985 | | |
Mosaic Real Estate Credit TE, LLC
|
| | Investment related transactions | | | | | 9,505,773 | | |
MREC TE REIT Pref Holdings, LLC
|
| | Distributions | | | | | 800 | | |
UA
|
| | Investment related transactions | | | | | 15,320,045 | | |
U2
|
| | Investment related transactions | | | | | 1,416,884 | | |
Various entities
|
| | Professional fees | | | | | 50,601 | | |
| | | | | | | $ | 29,530,157 | | |
Entity
|
| |
Description
|
| |
Due to
|
| |||
MGA
|
| |
Investment related transactions
|
| | | $ | 30,729,554 | | |
NU
|
| |
Investment related transactions
|
| | | | 963,554 | | |
MREC International Incentive Split, LP
|
| | Distributions | | | | | 86,848 | | |
| | | | | | | $ | 31,779,956 | | |
Members’ Equity per Unit
|
| |
Class A/CX/R
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | $ | 1,101.37 | | | | | | 1,103.95 | | | | | | 1,013.39 | | | | | | 1,091.54 | | |
Net investment income before management fees and incentive
|
| | | | 123.12 | | | | | | 123.38 | | | | | | 112.56 | | | | | | 122.05 | | |
Net unrealized depreciation from real estate joint
ventures |
| | | | (11.04) | | | | | | (11.05) | | | | | | (10.30) | | | | | | (10.94) | | |
Management fees
|
| | | | — | | | | | | — | | | | | | (25.58) | | | | | | — | | |
Incentive
|
| | | | (28.02) | | | | | | (25.28) | | | | | | — | | | | | | (27.78) | | |
Distributions
|
| | | | (66.54) | | | | | | (68.92) | | | | | | (81.05) | | | | | | (65.95) | | |
Members’ Equity per Unit, end of year
|
| | | $ | 1,118.89 | | | | | | 1,122.08 | | | | | | 1,009.02 | | | | | | 1,108.92 | | |
Total Return(1)
|
| |
Class A/CX/R
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Before incentive and management fees
|
| | | | 10.55% | | | | | | 10.55% | | | | | | 10.55% | | | | | | 10.55% | | |
After incentive and management fees
|
| | | | 7.82% | | | | | | 8.09% | | | | | | 7.82% | | | | | | 7.82% | | |
Ratios(2)
|
| |
Class A/CX/R
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.34% | | | | | | 0.34% | | | | | | 0.34% | | | | | | 0.34% | | |
Incentive
|
| | | | 2.53% | | | | | | 2.27% | | | | | | 0.00% | | | | | | 2.52% | | |
Management fees
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.86% | | | | | | 2.61% | | | | | | 2.86% | | | | | | 2.87% | | |
Fund’s pro rata share of expenses of real estate joint ventures
(note 4) |
| | | | 2.31% | | | | | | 2.31% | | | | | | 2.31% | | | | | | 2.31% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 5.19% | | | | | | 4.93% | | | | | | 5.18% | | | | | | 5.18% | | |
Net investment income, before incentive and management fees
|
| | | | 10.99% | | | | | | 10.96% | | | | | | 10.89% | | | | | | 11.01% | | |
Net investment income, after incentive and management fees
|
| | | | 8.47% | | | | | | 8.69% | | | | | | 8.37% | | | | | | 8.49% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $303,563,036)
|
| | | $ | 308,610,289 | | |
|
Cash
|
| | | | 2,286,623 | | |
|
Due from related parties
|
| | | | 37,009,307 | | |
|
Distributions receivable
|
| | | | 7,887,079 | | |
|
Organizational costs
|
| | | | 20,202 | | |
|
Total Assets
|
| | | | 355,813,500 | | |
| Liabilities | | | | | | | |
|
Redemptions payable
|
| | | | 19,584,101 | | |
|
Due to related parties
|
| | | | 15,328,279 | | |
|
Distributions payable
|
| | | | 6,357,549 | | |
|
Contributions received in advance
|
| | | | 1,772,011 | | |
|
Accounts payable
|
| | | | 296,071 | | |
|
Management fees payable
|
| | | | 2,096 | | |
|
Total Liabilities
|
| | | | 43,340,107 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 312,473,393 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 355,813,500 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 7,872,878 | | | | | $ | 6,326,133 | | | | | | 2.0% | | |
MREC Domestic REIT Holdings, LLC(1)
|
| | | | 243,137,285 | | | | | | 248,808,046 | | | | | | 79.6% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 33,921,566 | | | | | | 34,410,357 | | | | | | 11.0% | | |
MREC U2 Asset Pool, LLC(1)
|
| | | | 18,631,307 | | | | | | 19,065,753 | | | | | | 6.1% | | |
Total investments in real estate joint ventures
|
| | | $ | 303,563,036 | | | | | $ | 308,610,289 | | | | | | 98.7% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred
Return Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
Single Family Residence Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(3)
|
| | New York, NY | | |
6/4/15
|
| |
6/30/17(6)
|
| |
12.50 - 15.00%
|
| | | $ | 8,245,183 | | | | | $ | 5,724,517 | | | | | | 1.8% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II,
LLC(4) |
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 11,283,949 | | | | | | 11,283,949 | | | | | | 3.6% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(4) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 7,351,737 | | | | | | 7,351,737 | | | | | | 2.4% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
12.00%
|
| | | | 7,188,760 | | | | | | 7,211,845 | | | | | | 2.3% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartment, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 3,614,479 | | | | | | 3,660,948 | | | | | | 1.2% | | |
Mosaic Hawk Ridge, LLC(4)
|
| |
Winston Salem, NC
|
| |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 2,170,904 | | | | | | 2,193,638 | | | | | | 0.7% | | |
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 2,669,752 | | | | | | 2,698,940 | | | | | | 0.9% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(5)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(7)
|
| |
LIBOR(16) + 11.00%
|
| | | | 18,994,477 | | | | | | 19,188,563 | | | | | | 6.1% | | |
Total
|
| | | | | | | | | | | | | | | $ | 61,519,241 | | | | | $ | 59,314,137 | | | | | | 19.0% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest
Rate |
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair
Value |
| |
% of
Members’ Equity |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai, LLC(2)
|
| | Kauai, HI | | |
11/28/16
|
| |
11/28/20
|
| |
9.13%
|
| | | $ | 9,123,598 | | | | | $ | 7,370,260 | | | | | $ | 7,370,260 | | | | | $ | 7,370,260 | | | | | | 2.4% | | |
Mosaic Timbers Kiawah, LLC(2)
|
| | Kiawah Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 8,247,490 | | | | | | 7,837,322 | | | | | | 7,826,173 | | | | | | 7,837,322 | | | | | | 2.5% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
12/29/20
|
| |
LIBOR + 8.75%
|
| | | | 16,146,291 | | | | | | 8,358,396 | | | | | | 8,358,396 | | | | | | 8,358,396 | | | | | | 2.7% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
LIBOR(13) + 8.00%
|
| | | | 36,576,292 | | | | | | 6,590,874 | | | | | | 6,432,128 | | | | | | 6,590,874 | | | | | | 2.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 70,093,671 | | | | | | 30,156,852 | | | | | | 29,986,957 | | | | | | 30,156,852 | | | | | | 9.7% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR + 9.89%
|
| | | | 13,387,283 | | | | | | 2,812,076 | | | | | | 2,775,524 | | | | | | 2,812,076 | | | | | | 0.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR + 11.00%
|
| | | | 23,725,163 | | | | | | 14,831,756 | | | | | | 13,034,180 | | | | | | 14,831,756 | | | | | | 4.7% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
15.00%
|
| | | | 7,117,549 | | | | | | 6,536,610 | | | | | | 6,536,610 | | | | | | 6,536,610 | | | | | | 2.1% | | |
Mosaic Spring Street Hotel,
LLC(2) |
| | Los Angeles, CA | | |
11/16/18
|
| |
11/15/21
|
| |
LIBOR + 9.75%
|
| | | | 16,782,257 | | | | | | 902,912 | | | | | | 787,988 | | | | | | 902,912 | | | | | | 0.3% | | |
Mosaic Davis Hotel,
LLC(2) |
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
LIBOR(8) + 8.25%
|
| | | | 2,267,071 | | | | | | 2,106,562 | | | | | | 1,918,688 | | | | | | 2,106,562 | | | | | | 0.7% | | |
Mosaic Ketchum Resort, LLC(2)
|
| | Ketchum, ID | | |
12/5/19
|
| |
12/5/22
|
| |
LIBOR(9) + 9.00%
|
| | | | 39,607,841 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort, LLC(2)
|
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
LIBOR(10) + 7.56%
|
| | | | 108,740,328 | | | | | | 15,333,202 | | | | | | 14,891,618 | | | | | | 15,333,202 | | | | | | 4.9% | | |
Mosaic Portland Hotel, LLC(2)
|
| |
Portland, OR
|
| |
6/28/19
|
| |
6/29/23
|
| |
LIBOR(11) + 8.50%
|
| | | | 303,154,855 | | | | | | 10,792,404 | | | | | | 8,745,522 | | | | | | 10,792,404 | | | | | | 3.5% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 514,782,347 | | | | | | 53,315,522 | | | | | | 48,690,130 | | | | | | 53,315,522 | | | | | | 17.1% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks,
LLC(2) |
| | Windsor, CA | | |
3/31/17
|
| |
3/31/19(6)
|
| |
13.00%
|
| | | | 22,965,300 | | | | | | 20,100,485 | | | | | | 22,965,313 | | | | | | 20,100,485 | | | | | | 6.4% | | |
Mosaic Portland Superblock,
LLC(2) |
| | Portland, OR | | |
12/29/17
|
| |
3/30/19(6)
|
| |
13.00%
|
| | | | 24,192,392 | | | | | | 23,025,334 | | | | | | 23,736,092 | | | | | | 23,025,334 | | | | | | 7.4% | | |
Mosaic Righetti Ranch, LLC(2)
|
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
1/30/20
|
| |
10.00%
|
| | | | 16,146,291 | | | | | | 8,152,112 | | | | | | 8,152,112 | | | | | | 8,152,112 | | | | | | 2.6% | | |
Mosaic Parkland, LLC(2)
|
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
LIBOR(9) + 8.00%
|
| | | | 9,885,484 | | | | | | 9,455,696 | | | | | | 9,310,602 | | | | | | 9,455,696 | | | | | | 3.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 73,189,467 | | | | | | 60,733,627 | | | | | | 64,164,119 | | | | | | 60,733,627 | | | | | | 19.4% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway, LLC(2)
|
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
LIBOR + 8.75%
|
| | | | 14,297,989 | | | | | | 14,226,647 | | | | | | 14,226,647 | | | | | | 14,226,647 | | | | | | 4.6% | | |
Mosaic Federal Way Mezz, LLC(2)
|
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 13,973,850 | | | | | | 13,713,517 | | | | | | 13,713,517 | | | | | | 13,713,517 | | | | | | 4.4% | | |
Mosaic Park DTLA,
LLC(2) |
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 17,134,840 | | | | | | 13,959,044 | | | | | | 13,855,906 | | | | | | 13,959,044 | | | | | | 4.5% | | |
Mosaic River Rock,
LLC(2) |
| | Sacramento, CA | | |
2/28/18
|
| |
2/29/20
|
| |
11.00%
|
| | | | 11,341,086 | | | | | | 11,016,725 | | | | | | 11,016,725 | | | | | | 11,016,725 | | | | | | 3.5% | | |
Mosaic DTLA Parking, LLC(2)
|
| | Los Angeles, CA | | |
6/26/19
|
| |
6/26/21
|
| |
LIBOR(11) + 8.25%
|
| | | | 13,312,452 | | | | | | 11,729,829 | | | | | | 11,605,868 | | | | | | 11,729,829 | | | | | | 3.8% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
LIBOR(14) + 7.75%
|
| | | | 44,319,922 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
LIBOR + 8.00%
|
| | | | 13,288,394 | | | | | | 13,028,357 | | | | | | 12,589,087 | | | | | | 13,028,357 | | | | | | 4.2% | | |
Mosaic Retreat, LLC(2)
|
| | Midway City, CA | | |
6/10/19
|
| |
7/1/21
|
| |
LIBOR(15) + 8.50%
|
| | | | 14,195,556 | | | | | | 2,764,165 | | | | | | 2,664,142 | | | | | | 2,764,165 | | | | | | 0.9% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
LIBOR(15) + 8.50%
|
| | | | 36,246,776 | | | | | | 32,662,372 | | | | | | 32,374,706 | | | | | | 32,662,372 | | | | | | 10.5% | | |
Mosaic West Cheyenne, LLC(2)
|
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
LIBOR + 7.25%
|
| | | | 23,148,509 | | | | | | 4,526,176 | | | | | | 4,318,995 | | | | | | 4,526,176 | | | | | | 1.4% | | |
Mosaic 1111 Sunset,
LLC(2) |
| | Los Angeles, CA | | |
8/29/19
|
| |
9/1/21
|
| |
LIBOR(11) + 6.25%
|
| | | | 15,331,589 | | | | | | 14,959,879 | | | | | | 14,811,549 | | | | | | 14,959,879 | | | | | | 4.8% | | |
Mosaic Merced Station, LLC(2)
|
| |
Merced, CA
|
| |
11/26/19
|
| |
12/1/21
|
| |
LIBOR(12) + 7.25%
|
| | | | 3,069,700 | | | | | | 2,607,255 | | | | | | 2,174,443 | | | | | | 2,607,255 | | | | | | 0.8% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 219,660,663 | | | | | | 135,193,966 | | | | | | 133,351,585 | | | | | | 135,193,966 | | | | | | 43.4% | | |
Total
|
| | | | | | | | | | | | | | | $ | 877,726,148 | | | | | $ | 279,399,967 | | | | | $ | 276,192,791 | | | | | $ | 279,399,967 | | | | | | 89.6% | | |
Total investments held by
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 337,712,032 | | | | | $ | 338,714,104 | | | | | | 108.6% | | |
Other net liabilities of
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (34,148,996) | | | | | $ | (30,103,815) | | | | | | -9.6% | | |
Total investments in investments
in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 303,563,036 | | | | | $ | 308,610,289 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 33,384,454 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 314,414 | | |
|
Administration expense
|
| | | | 255,228 | | |
|
Organizational expenses
|
| | | | 54,220 | | |
|
Management fees
|
| | | | 7,982 | | |
|
Total Fund Expenses
|
| | | | 631,844 | | |
|
Net Investment Income
|
| | | | 32,752,610 | | |
|
Realized Gain from Real Estate Joint Ventures
|
| | | | 1,530 | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 1,727,017 | | |
|
Net Income
|
| | | $ | 34,481,157 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class M
Members |
| |
Class F
Members |
| |
Class QC
Members |
| |
Total Members’
Equity |
| ||||||||||||||||||
Members’ Equity, beginning of year
|
| | | $ | 788,007 | | | | | $ | 229,896,273 | | | | | $ | 232,602 | | | | | $ | 5,260,526 | | | | | $ | 284,451 | | | | | $ | 236,461,859 | | |
Net income
|
| | | | — | | | | | | 33,056,724 | | | | | | 30,628 | | | | | | 1,358,119 | | | | | | 35,686 | | | | | | 34,481,157 | | |
Incentive allocation
|
| | | | 8,588,265 | | | | | | (8,264,180) | | | | | | — | | | | | | (315,163) | | | | | | (8,922) | | | | | | — | | |
Distributions
|
| | | | (7,710,350) | | | | | | (22,178,056) | | | | | | (35,153) | | | | | | (909,125) | | | | | | (23,297) | | | | | | (30,855,981) | | |
Contributions
|
| | | | — | | | | | | 92,358,412 | | | | | | 178,172 | | | | | | 6,001,627 | | | | | | 8,532 | | | | | | 98,546,743 | | |
Redemptions
|
| | | | — | | | | | | (26,160,385) | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,160,385) | | |
Members’ Equity, end of year
|
| | | $ | 1,665,922 | | | | | $ | 298,708,788 | | | | | $ | 406,249 | | | | | $ | 11,395,984 | | | | | $ | 296,450 | | | | | $ | 312,473,393 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 34,481,157 | | |
| Adjustments to reconcile net income | | | | | | | |
| to net cash used in operating activities: | | | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (33,384,454) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (1,727,017) | | |
|
Realized gain from real estate joint ventures
|
| | | | (1,530) | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (116,694,400) | | |
|
Distributions from investments in real estate joint ventures, net of change in distributions receivable
|
| | | | 68,718,744 | | |
|
Amortization of organizational costs
|
| | | | 54,220 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | 7,663,951 | | |
|
Due from related parties
|
| | | | (18,891,284) | | |
|
Other liabilities
|
| | | | (160,000) | | |
|
Accounts payable
|
| | | | 43,631 | | |
|
Management fee payable
|
| | | | 912 | | |
|
Net cash used in operating activities
|
| | | | (59,896,070) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (30,234,193) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 99,368,754 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (9,540,470) | | |
|
Net cash provided by financing activities
|
| | | | 59,594,091 | | |
|
Net decrease in cash during the year
|
| | | | (301,979) | | |
|
Cash – beginning of year
|
| | | | 2,588,602 | | |
|
Cash – end of year
|
| | |
$
|
2,286,623
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13 – 10.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.99 – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.00 – 10.25%
|
|
|
Land Development
|
| |
Market Comparable Approach
|
| |
Price per square foot
|
| |
$38 – 161
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.75 – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
13.00%
|
|
|
Balance at January 1, 2019
|
| | | $ | 227,310,325 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 116,694,400 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (70,507,437) | | |
|
Net investment income from real estate joint ventures
|
| | | | 33,384,454 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 1,727,017 | | |
|
Realized gain from real estate joint ventures
|
| | | | 1,530 | | |
|
Balance at December 31, 2019
|
| | | $ | 308,610,289 | | |
|
Interest income
|
| | | $ | 31,406,775 | | |
|
Accrued preferred returns
|
| | | | 4,059,739 | | |
|
Other income
|
| | | | 495,149 | | |
|
Professional fees
|
| | | | (1,723,790) | | |
|
Interest expense
|
| | | | (764,390) | | |
|
Administration expense
|
| | | | (81,272) | | |
|
Organizational expenses
|
| | | | (7,756) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 33,384,454 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 47,114,382 | | | | | | 14 | | |
Northeast
|
| | | | 44,977,763 | | | | | | 13 | | |
Pacific
|
| | | | 189,488,574 | | | | | | 56 | | |
Southeast
|
| | | | 46,935,827 | | | | | | 14 | | |
Southwest
|
| | | | 10,197,558 | | | | | | 3 | | |
Total
|
| | | $ | 338,714,104 | | | | | | 100 | | |
Members’ Equity per Unit
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | | 1088.20 | | | | | | 1090.36 | | | | | | 1023.09 | | | | | | 1078.49 | | |
Net investment income before management fees and incentive
|
| | | | 124.97 | | | | | | 125.27 | | | | | | 116.53 | | | | | | 123.85 | | |
Net gain from real estate joint ventures
|
| | | | 10.13 | | | | | | 10.15 | | | | | | 9.64 | | | | | | 10.04 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | (26.01) | | | | | | — | | |
Incentive
|
| | | | (33.77) | | | | | | (30.47) | | | | | | — | | | | | | (33.47) | | |
Distributions
|
| | | | (88.16) | | | | | | (91.36) | | | | | | (109.86) | | | | | | (87.37) | | |
Members’ Equity per Unit, end of year
|
| | | | 1101.37 | | | | | | 1103.95 | | | | | | 1013.39 | | | | | | 1091.54 | | |
Total Return(1)
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Before incentive and management fees
|
| | | | 12.96% | | | | | | 12.96% | | | | | | 12.96% | | | | | | 12.96% | | |
After incentive and management fees
|
| | | | 9.58% | | | | | | 9.92% | | | | | | 10.17% | | | | | | 9.58% | | |
Ratios(2)
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.22% | | | | | | 0.22% | | | | | | 0.22% | | | | | | 0.22% | | |
Incentive
|
| | | | 3.03% | | | | | | 2.64% | | | | | | 0.00% | | | | | | 3.06% | | |
Management fees
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 2.53% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 3.25% | | | | | | 2.86% | | | | | | 2.75% | | | | | | 3.29% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 0.91% | | | | | | 0.91% | | | | | | 0.91% | | | | | | 0.91% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 4.17% | | | | | | 3.78% | | | | | | 3.66% | | | | | | 4.19% | | |
Net investment income, before incentive and management fees
|
| | | | 11.53% | | | | | | 11.02% | | | | | | 11.57% | | | | | | 11.70% | | |
Net investment income, after incentive and management fees
|
| | | | 8.49% | | | | | | 8.38% | | | | | | 9.04% | | | | | | 8.64% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $223,990,088)
|
| | | $ | 227,310,325 | | |
|
Cash
|
| | | | 2,588,602 | | |
|
Due from related parties, net
|
| | | | 10,453,694 | | |
|
Distributions receivable
|
| | | | 6,098,386 | | |
|
Organizational costs
|
| | | | 74,422 | | |
|
Total Assets
|
| | | | 246,525,429 | | |
| Liabilities | | | | | | | |
|
Distributions payable
|
| | | | 5,735,761 | | |
|
Redemptions payable
|
| | | | 2,964,186 | | |
|
Contributions received in advance
|
| | | | 950,000 | | |
|
Accounts payable
|
| | | | 252,438 | | |
|
Other liabilities
|
| | | | 160,000 | | |
|
Management fees payable
|
| | | | 1,185 | | |
|
Total Liabilities
|
| | | | 10,063,570 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 236,461,859 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 246,525,429 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of Members’
Equity |
| |||||||||
MREC NU Asset Pool, LLC(2)
|
| | | $ | 7,855,393 | | | | | $ | 7,971,834 | | | | | | 3.4% | | |
MREC Domestic REIT Holdings, LLC(2)
|
| | | | 173,300,049 | | | | | | 175,868,900 | | | | | | 74.4% | | |
MREC TE REIT Pref Holdings, LLC(2)
|
| | | | 27,077,088 | | | | | | 27,478,456 | | | | | | 11.6% | | |
MREC U2 Asset Pool, LLC(2)
|
| | | | 15,757,558 | | | | | | 15,991,135 | | | | | | 6.8% | | |
Total investments in real estate joint ventures
|
| | | $ | 223,990,088 | | | | | $ | 227,310,325 | | | | | | 96.2% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred Return
Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
Single Family Residence Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(2)
|
| | New York, NY | | |
6/4/15
|
| |
6/30/17(6)
|
| |
12.50 – 15.00%
|
| | | $ | 8,222,798 | | | | | $ | 7,319,463 | | | | | | 3.1% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(2)
|
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
8.00 – 12.00%
|
| | | | 11,441,177 | | | | | | 11,441,177 | | | | | | 4.8% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III, LLC(2)
|
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
8.00 – 12.00%
|
| | | | 7,454,179 | | | | | | 7,454,179 | | | | | | 3.2% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(2)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
8.00 – 12.00%
|
| | | | 7,269,764 | | | | | | 7,305,186 | | | | | | 3.1% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC+
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(8)
|
| |
LIBOR + 11.00%
|
| | | | 15,596,861 | | | | | | 15,891,104 | | | | | | 6.7% | | |
Total
|
| | | | | | | | | | | | | | | $ | 49,984,779 | | | | | $ | 49,411,109 | | | | | | 20.9% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair
Value |
| |
% of
Members’ Equity |
| |||||||||||||||
Condominium Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Tahoe Beach
Club, LLC(2) |
| | Gardnerville, NV | | |
12/28/16
|
| |
12/31/18(2)
|
| |
13.00%
|
| | | $ | 29,919,086 | | | | | $ | 22,497,634 | | | | | $ | 22,497,634 | | | | | $ | 22,497,634 | | | | | | 9.5% | | |
Mosaic Timbers Kauai, LLC(2)
|
| | Kauai, HI | | |
11/28/16
|
| |
11/28/19
|
| |
9.13%
|
| | | | 15,952,494 | | | | | | 12,368,193 | | | | | | 12,368,193 | | | | | | 12,368,193 | | | | | | 5.2% | | |
Mosaic Timbers Kiawali, LLC(2)
|
| | Kiawali Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 14,136,714 | | | | | | 13,437,904 | | | | | | 13,562,937 | | | | | | 13,710,366 | | | | | | 5.8% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
12/20/19
|
| |
LIBOR+ 8.75%
|
| | | | 16,850,980 | | | | | | 5,508,737 | | | | | | 5,181,726 | | | | | | 5,508,737 | | | | | | 2.3% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 76,859,274 | | | | | | 53,812,468 | | | | | | 53,610,490 | | | | | | 54,084,930 | | | | | | 22.8% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento
Hotel, LLC(2) |
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR+ 9.89%
|
| | | | 26,961,567 | | | | | | 5,409,784 | | | | | | 5,304,377 | | | | | | 5,409,784 | | | | | | 2.3% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR + 11.00%
|
| | | | 24,760,623 | | | | | | 5,208,534 | | | | | | 2,373,882 | | | | | | 5,208,534 | | | | | | 2.2% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
8.00%
|
| | | | 7,428,187 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic Spring Street
Hotel, LLC(2) |
| | Los Angeles, CA | | |
11/16/18
|
| |
11/15/21
|
| |
LIBOR+ 9.75%
|
| | | | 35,029,404 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 94,179,781 | | | | | | 10,618,318 | | | | | | 7,678,259 | | | | | | 10,618,318 | | | | | | 4.5% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| |
3/31/19
|
| |
13.00%
|
| | | | 20,499,644 | | | | | | 20,153,763 | | | | | | 20,153,763 | | | | | | 20,153,763 | | | | | | 8.5% | | |
Mosaic Portland Superblock,
LLC(2) |
| | Portland, OR | | |
12/29/17
|
| |
3/30/19
|
| |
13.00%
|
| | | | 21,531,006 | | | | | | 20,797,857 | | | | | | 20,797,857 | | | | | | 20,797,857 | | | | | | 8.8% | | |
Mosaic Righetti Ranch, LLC(2)
|
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
9/30/19
|
| |
10.00%
|
| | | | 16,850,980 | | | | | | 8,037,791 | | | | | | 7,789,016 | | | | | | 8,037,791 | | | | | | 3.4% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 58,881,630 | | | | | | 48,989,411 | | | | | | 48,740,636 | | | | | | 48,989,411 | | | | | | 20.7% | | |
Mixed-Use Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway, LLC(2)
|
| | Las Vegas, NV | | |
12/20/17
|
| |
6/1/19
|
| |
LIBOR+ 8.75%
|
| | | | 14,099,799 | | | | | | 7,331,000 | | | | | | 7,265,519 | | | | | | 7,331,000 | | | | | | 3.1% | | |
Mosaic Federal Way
Mezz, LLC(2) |
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 33,426,841 | | | | | | 31,475,055 | | | | | | 31,309,130 | | | | | | 31,475,055 | | | | | | 13.3% | | |
Mosaic Park DTLA,
LLC(2) |
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 17,882,672 | | | | | | 13,544,841 | | | | | | 13,378,333 | | | | | | 13,544,841 | | | | | | 5.7% | | |
Mosaic River Rock,
LLC(2) |
| | Sacramento, CA | | |
2/28/18
|
| |
3/1/19
|
| |
11.00%
|
| | | | 10,282,537 | | | | | | 9,927,476 | | | | | | 9,884,552 | | | | | | 9,927,476 | | | | | | 4.2% | | |
Mosaic Turk & Leavenworth,
LLC(2) |
| | San Francisco, CA | | |
8/6/18
|
| |
2/6/19(7)
|
| |
LIBOR+ 8.25%
|
| | | | 6,877,951 | | | | | | 6,612,086 | | | | | | 6,584,295 | | | | | | 6,612,086 | | | | | | 2.8% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 82,569,800 | | | | | | 68,890,458 | | | | | | 68,421,829 | | | | | | 68,890,458 | | | | | | 29.1% | | |
Total
|
| | | | | | | | | | | | | | | $ | 312,490,485 | | | | | $ | 182,310,655 | | | | | $ | 178,451,214 | | | | | $ | 182,583,117 | | | | | | 77.1% | | |
Total investments held
by investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 228,435,993 | | | | | $ | 231,994,226 | | | | | | 98.0% | | |
Other net liabilities of investments in real estate joint in
ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (4,445,905) | | | | | $ | (4,683,901) | | | | | | -2.0% | | |
Total investments in investments in real estate joint ventures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
223,990,088
|
| | | |
$
|
227,310,325
|
| | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 25,329,643 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 247,211 | | |
|
Administration expense
|
| | | | 215,150 | | |
|
Organizational expenses
|
| | | | 54,220 | | |
|
Management fees
|
| | | | 5,542 | | |
|
Total Fund Expenses
|
| | | | 522,123 | | |
|
Net Investment Income
|
| | | | 24,807,520 | | |
|
Realized Loss from Real Estate Joint Ventures
|
| | | | (2,646,382) | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 3,154,443 | | |
|
Net Income
|
| | | $ | 25,315,581 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class M
Members |
| |
Class F
Members |
| |
Class QC
Members |
| |
Total Members’
Equity |
| ||||||||||||||||||
Members’ Equity, beginning of year
|
| | | $ | 439,424 | | | | | $ | 158,051,689 | | | | | $ | 200,116 | | | | | $ | 5,221,868 | | | | | $ | 270,431 | | | | | $ | 164,183,528 | | |
Net income
|
| | | | — | | | | | | 24,623,011 | | | | | | 21,229 | | | | | | 637,446 | | | | | | 33,895 | | | | | | 25,315,581 | | |
Incentive allocation
|
| | | | 6,307,652 | | | | | | (6,155,753) | | | | | | — | | | | | | (143,425) | | | | | | (8,474) | | | | | | — | | |
Distributions
|
| | | | (5,959,069) | | | | | | (17,107,195) | | | | | | (24,613) | | | | | | (455,363) | | | | | | (23,378) | | | | | | (23,569,618) | | |
Contributions
|
| | | | — | | | | | | 74,036,629 | | | | | | 35,870 | | | | | | — | | | | | | 11,977 | | | | | | 74,084,476 | | |
Redemptions
|
| | | | — | | | | | | (3,552,108) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,552,108) | | |
Members’ Equity, end
of year |
| | | $ | 788,007 | | | | | $ | 229,896,273 | | | | | $ | 232,602 | | | | | $ | 5,260,526 | | | | | $ | 284,451 | | | | | $ | 236,461,859 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 25,315,581 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (25,329,643) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (3,154,443) | | |
|
Realized loss from real estate joint ventures
|
| | | | 2,646,382 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (360,259,874) | | |
|
Distributions from investments in real estate joint ventures
|
| | | | 331,553,369 | | |
|
Amortization of organizational costs
|
| | | | 54,220 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to/from related parties
|
| | | | (8,927,939) | | |
|
Distributions receivable
|
| | | | (6,098,386) | | |
|
Accounts payable
|
| | | | 134,155 | | |
|
Other liabilities
|
| | | | 160,000 | | |
|
Management fee payable
|
| | | | (564) | | |
|
Net cash used in operating activities
|
| | | | (43,907,142) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (27,050,111) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 72,334,476 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (2,701,475) | | |
|
Net cash provided by financing activities
|
| | | | 42,582,890 | | |
|
Net decrease in cash during the year
|
| | | | (1,324,252) | | |
|
Cash – beginning of year
|
| | | | 3,912,854 | | |
|
Cash – end of year
|
| | |
$
|
2,588,602
|
| |
|
Investment type
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
(Weighted Average) |
|
|
Investments in Loans
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.00 – 16.00%
(11.99)% |
|
|
Investments in Preferred Equity
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.00 – 15.00%
(9.63)% |
|
|
Balance at January 1, 2018
|
| | | $ | 172,766,116 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 360,259,874 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (331,553,369) | | |
|
Net investment income from real estate joint ventures
|
| | | | 25,329,643 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 3,154,443 | | |
|
Realized loss from real estate joint ventures
|
| | | | (2,646,382) | | |
|
Balance at December 31, 2018
|
| | | $ | 227,310,325 | | |
|
Change in unrealized appreciation for investments held at December 31, 2018
|
| | | $ | 2,077,801 | | |
|
Interest income
|
| | | $ | 20,155,870 | | |
|
Accrued preferred returns
|
| | | | 2,253,946 | | |
|
Other income
|
| | | | 3,788,664 | | |
|
Professional fees
|
| | | | (742,695) | | |
|
Administration expense
|
| | | | (63,290) | | |
|
Interest expense
|
| | | | (54,934) | | |
|
Organizational expenses
|
| | | | (7,918) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 25,329,643 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 29,828,634 | | | | | | 13 | | |
Northeast
|
| | | | 7,319,463 | | | | | | 3 | | |
Pacific
|
| | | | 149,426,484 | | | | | | 64 | | |
Southeast
|
| | | | 45,419,645 | | | | | | 20 | | |
Total
|
| | | $ | 231,994,226 | | | | | | 100 | | |
Members’ Equity per Unit
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | | 1080.40 | | | | | | 1082.34 | | | | | | 1039.69 | | | | | | 1070.77 | | |
Net investment income before management fees and incentive
|
| | | | 131.38 | | | | | | 131.66 | | | | | | 125.33 | | | | | | 130.21 | | |
Net gain fromreal estate joint ventures
|
| | | | 0.47 | | | | | | 0.47 | | | | | | 0.31 | | | | | | 0.46 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | (26.17) | | | | | | — | | |
Incentive
|
| | | | (32.96) | | | | | | (29.73) | | | | | | — | | | | | | (32.67) | | |
Distributions
|
| | | | (91.09) | | | | | | (94.38) | | | | | | (116.07) | | | | | | (90.28) | | |
Members’ Equity per Unit, end of year
|
| | | | 1088.20 | | | | | | 1090.36 | | | | | | 1023.09 | | | | | | 1078.49 | | |
Total Return(1)
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Before incentive and management fees
|
| | | | 12.83% | | | | | | 12.83% | | | | | | 12.83% | | | | | | 12.83% | | |
After incentive and management fees
|
| | | | 9.49% | | | | | | 9.82% | | | | | | 10.04% | | | | | | 9.49% | | |
Ratios(2)
|
| |
Class A/CX
|
| |
Class F
|
| |
Class M
|
| |
Class QC
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | |
Incentive
|
| | | | 3.10% | | | | | | 2.73% | | | | | | 0.00% | | | | | | 3.04% | | |
Management fees
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 2.53% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 3.35% | | | | | | 2.98% | | | | | | 2.78% | | | | | | 3.29% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 0.43% | | | | | | 0.43% | | | | | | 0.43% | | | | | | 0.43% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 3.78% | | | | | | 3.41% | | | | | | 3.21% | | | | | | 3.72% | | |
Net investment income, before incentive and management fees
|
| | | | 12.17% | | | | | | 11.92% | | | | | | 11.98% | | | | | | 11.94% | | |
Net investment income, after incentive and management fees
|
| | | | 9.06% | | | | | | 9.19% | | | | | | 9.45% | | | | | | 8.90% | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-80 | | | |
| | | | | F-81 | | | |
| | | | | F-82 | | | |
| | | | | F-83 | | |
| | | | | F-95 | | | |
| | | | | F-96 | | | |
| | | | | F-97 | | | |
| | | | | F-100 | | | |
| | | | | F-101 | | | |
| | | | | F-102 | | | |
| | | | | F-103 | | |
| | | | | F-113 | | | |
| | | | | F-114 | | | |
| | | | | F-115 | | | |
| | | | | F-118 | | | |
| | | | | F-119 | | | |
| | | | | F-120 | | | |
| | | | | F-121 | | |
| | | | | F-131 | | | |
| | | | | F-132 | | | |
| | | | | F-133 | | | |
| | | | | F-135 | | | |
| | | | | F-136 | | | |
| | | | | F-137 | | | |
| | | | | F-138 | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $176,932,328)
|
| | | $ | 175,334,413 | | |
|
Cash
|
| | | | 1,295,968 | | |
|
Due from related parties
|
| | | | 15,155,817 | | |
|
Distributions receivable
|
| | | | 669,054 | | |
|
Total Assets
|
| | | | 192,455,252 | | |
| Liabilities | | | | | | | |
|
Due to related parties
|
| | | | 18,061,938 | | |
|
Distributions payable
|
| | | | 4,590,385 | | |
|
Accounts payable
|
| | | | 257,376 | | |
|
Management fees payable
|
| | | | 3,222 | | |
|
Total Liabilities
|
| | | | 22,912,921 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 169,542,331 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 192,455,252 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 3,390,122 | | | | | $ | 1,995,258 | | | | | | 1.2% | | |
MREC Shared Holdings General Partnership(1)
|
| | | | 141,670,096 | | | | | | 140,774,442 | | | | | | 83.0% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 22,027,900 | | | | | | 22,525,706 | | | | | | 13.3% | | |
MREC TE Holdings, LLC(1)
|
| | | | 9,844,210 | | | | | | 10,039,007 | | | | | | 5.9% | | |
Total
|
| | | $ | 176,932,328 | | | | | $ | 175,334,413 | | | | | | 103.4% | | |
Investments in
Preferred Equity |
| |
City, State
|
| |
Acquistion
Date |
| |
Maturity
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(4) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | $ | 2,363,747 | | | | | $ | 2,363,747 | | | | | | 1.4% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 3,040,122 | | | | | | 3,040,966 | | | | | | 1.8% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartments, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 1,680,937 | | | | | | 1,685,110 | | | | | | 1.0% | | |
Mosaic Hawk Ridge Investor , LLC(4)
|
| | Winston Salem, NC | | |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 939,262 | | | | | | 941,757 | | | | | | 0.6% | | |
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 1,154,599 | | | | | | 1,158,232 | | | | | | 0.7% | | |
Mosaic VL Investor, LLC(4)
|
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 7,565,017 | | | | | | 7,629,546 | | | | | | 4.5% | | |
MREC Sunbelt Porfolio Sub-Pool 1, LLC(4)
|
| | Mission, TX | | |
11/10/20
|
| |
N/A(6)
|
| |
12.00%
|
| | | | 12,853,194 | | | | | | 13,002,202 | | | | | | 7.7% | | |
| | | Corpus Christi, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Southaven, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE,
LLC(5) |
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(6)
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 8,859,886 | | | | | | 8,868,922 | | | | | | 5.2% | | |
Total
|
| | | | | | | | | | | | | | | $ | 38,456,764 | | | | | $ | 38,690,482 | | | | | | 22.9% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai, LLC(2)
|
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | $ | 353,038 | | | | | $ | 353,038 | | | | | $ | 353,038 | | | | | $ | 353,038 | | | | | | 0.2% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR +
6.75% or 9.15% |
| | | | 16,788,664 | | | | | | 15,782,070 | | | | | | 15,809,841 | | | | | | 15,782,070 | | | | | | 9.3% | | |
Mosaic Sovereign Town Center, LLC(2)
|
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR
plus 8.20% or 9.20% |
| | | | 17,355,849 | | | | | | 1,693,939 | | | | | | 1,661,169 | | | | | | 1,693,939 | | | | | | 1.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 34,497,551 | | | | | | 17,829,047 | | | | | | 17,824,048 | | | | | | 17,829,047 | | | | | | 10.5% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel,
LLC(2) |
| |
Sacramento, CA
|
| |
7/24/18
|
| |
10/23/21
|
| |
Greater of LIBOR +
9.89% or 10.89%(7) |
| | | | 5,611,346 | | | | | | 5,583,829 | | | | | | 5,583,829 | | | | | | 5,583,829 | | | | | | 3.3% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 5,444,972 | | | | | | 5,433,258 | | | | | | 5,363,582 | | | | | | 5,433,258 | | | | | | 3.2% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 3,266,983 | | | | | | 3,262,605 | | | | | | 3,262,605 | | | | | | 3,262,605 | | | | | | 1.9% | | |
Mosaic Spring Street Hotel,
LLC(2) |
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR +
9.75% or 11.50%(7) |
| | | | 7,703,123 | | | | | | 5,077,048 | | | | | | 5,069,471 | | | | | | 5,077,048 | | | | | | 3.0% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR +
8.25% or 9.25% |
| | | | 7,138,964 | | | | | | 7,108,111 | | | | | | 7,084,194 | | | | | | 7,108,111 | | | | | | 4.2% | | |
Mosaic Park City Resort,
LLC(2) |
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR +
7.56% or 9.99% |
| | | | 23,199,423 | | | | | | 15,829,646 | | | | | | 15,772,149 | | | | | | 15,829,646 | | | | | | 9.3% | | |
Mosaic Portland Hotel, LLC(2)
|
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR +
8.50% or 11.00% |
| | | | 139,149,289 | | | | | | 18,754,683 | | | | | | 18,280,630 | | | | | | 18,754,683 | | | | | | 11.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 191,514,100 | | | | | | 61,049,180 | | | | | | 60,416,460 | | | | | | 61,049,180 | | | | | | 36.0% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Metro Air Park, LLC(2)
|
| |
Sacramento, CA
|
| |
2/28/18
|
| |
12/31/21
|
| |
11.00% (3)
|
| | | | 5,205,604 | | | | | | 3,781,273 | | | | | | 3,781,273 | | | | | | 3,781,273 | | | | | | 2.2% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR +
7.75% or 9.60% |
| | | | 2,556,112 | | | | | | 2,438,267 | | | | | | 2,438,259 | | | | | | 2,438,267 | | | | | | 1.4% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR +
8.00% or 10.02% |
| | | | 45,374,768 | | | | | | 20,968,844 | | | | | | 20,898,922 | | | | | | 20,968,844 | | | | | | 12.4% | | |
Mosaic Retreat, LLC(2)
|
| |
Midway City, CA
|
| |
6/10/19
|
| |
1/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 2,625,918 | | | | | | 2,570,391 | | | | | | 2,628,626 | | | | | | 2,570,391 | | | | | | 1.5% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 16,637,415 | | | | | | 12,771,319 | | | | | | 12,737,919 | | | | | | 12,771,319 | | | | | | 7.5% | | |
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
6.25% or 8.75% |
| | | | 4,091,292 | | | | | | 3,906,223 | | | | | | 3,906,223 | | | | | | 3,906,223 | | | | | | 2.3% | | |
Mosaic Merced, LLC(2)
|
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
7.25% or 9.35% |
| | | | 20,796,769 | | | | | | 15,915,739 | | | | | | 15,966,694 | | | | | | 15,915,739 | | | | | | 9.4% | | |
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR +
4.75% or 6.40% |
| | | | 3,629,981 | | | | | | 3,617,128 | | | | | | 3,603,721 | | | | | | 3,617,128 | | | | | | 2.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 100,917,859 | | | | | | 65,969,184 | | | | | | 65,961,637 | | | | | | 65,969,184 | | | | | | 38.8% | | |
Total | | | | | | | | | | | | | | | | $ | 326,929,510 | | | | | $ | 144,847,411 | | | | | $ | 144,202,145 | | | | | $ | 144,847,411 | | | | | | 85.3% | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| | | $ | 14,558,589 | | | | | $ | 10,439,222 | | | | | | 6.2% | | |
Mosaic Vintage Oaks,
LLC(2) |
| | Windsor, CA | | |
3/31/17
|
| | | | 12,164,396 | | | | | | 9,090,079 | | | | | | 5.4% | | |
Subtotal
|
| | | | | | | | | | 26,722,985 | | | | | | 19,529,301 | | | | | | 11.5% | | |
Mixed-Use Development
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 7,541,960 | | | | | | 7,676,268 | | | | | | 4.5% | | |
Subtotal
|
| | | | | | | | | | 7,541,960 | | | | | | 7,676,268 | | | | | | 4.5% | | |
Total
|
| | | $ | 34,264,945 | | | | | $ | 27,205,569 | | | | | | 16.0% | | | ||||||
Total investments held by investments in real estate joint ventures
|
| | | $ | 216,923,854 | | | | | $ | 210,743,462 | | | | | | 124.3% | | | ||||||
Other net liabilities of investments in real estate joint ventures
|
| | | $ | (39,991,526) | | | | | $ | (35,409,049) | | | | | | -20.9% | | | ||||||
Total investments in real estate joint ventures
|
| | | $ | 176,932,328 | | | | | $ | 175,334,413 | | | | | | | | |
| | |
2021
|
| |
2020
|
| ||||||
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 15,113,156 | | | | | $ | 13,250,184 | | |
Fund Expenses | | | | | | | | | | | | | |
Professional fees
|
| | | | 340,679 | | | | | | 172,847 | | |
Administration expense
|
| | | | 195,618 | | | | | | 219,345 | | |
Organizational expenses
|
| | | | 11,605 | | | | | | 11,691 | | |
Management fees
|
| | | | 9,428 | | | | | | 8,962 | | |
Total Fund Expenses
|
| | | | 557,330 | | | | | | 412,845 | | |
Net Investment Income
|
| | | | 14,555,826 | | | | | | 12,837,339 | | |
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (969,866) | | | | | | (1,419,910) | | |
Net Realized Loss from Real Estate Joint Ventures
|
| | | | (1,092,836) | | | | | | — | | |
Net Income
|
| | | $ | 12,493,124 | | | | | $ | 11,417,429 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class CXR
Members |
| |
Class M
Members |
| |
Class MR
Members |
| |
Class QC
Members |
| |
Class Z
Members |
| |
Total Members’
Equity |
| ||||||||||||||||||||||||
Members’ Equity, beginning of
period |
| | | $ | 1,295,647 | | | | | $ | 134,972,247 | | | | | $ | 25,136,469 | | | | | $ | 436,924 | | | | | $ | 56,477 | | | | | $ | 832,663 | | | | | $ | 3,168,274 | | | | | $ | 165,898,701 | | |
Net income
|
| | | | — | | | | | | 10,267,348 | | | | | | 1,894,996 | | | | | | 24,930 | | | | | | 3,160 | | | | | | 62,875 | | | | | | 239,815 | | | | | | 12,493,124 | | |
Incentive
allocation |
| | | | 3,056,305 | | | | | | (2,566,837) | | | | | | (473,749) | | | | | | — | | | | | | — | | | | | | (15,719) | | | | | | — | | | | | | — | | |
Distributions
|
| | | | (2,521,604) | | | | | | (6,920,823) | | | | | | (1,277,229) | | | | | | (29,324) | | | | | | (3,723) | | | | | | (42,377) | | | | | | (212,070) | | | | | | (11,007,150) | | |
Contributions
|
| | | | — | | | | | | 2,188,574 | | | | | | 6,436 | | | | | | 14,110 | | | | | | — | | | | | | 2,544 | | | | | | 8,557 | | | | | | 2,220,221 | | |
Redemptions
|
| | | | — | | | | | | (62,565) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (62,565) | | |
Members’ Equity, end
of period |
| | | $ | 1,830,348 | | | | | $ | 137,877,944 | | | | | $ | 25,286,923 | | | | | $ | 446,640 | | | | | $ | 55,914 | | | | | $ | 839,986 | | | | | $ | 3,204,576 | | | | | $ | 169,542,331 | | |
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 12,493,124 | | | | | $ | 11,417,429 | | |
Adjustments to reconcile net income to net cash provided by (used in) operating
activities: |
| | | | | | | | | | | | |
Net investment income from real estate joint ventures
|
| | | | (15,113,156) | | | | | | (13,250,184) | | |
Change in unrealized depreciation from real estate joint ventures
|
| | | | 969,866 | | | | | | 1,419,910 | | |
Net realized loss from real estate joint ventures
|
| | | | 1,092,836 | | | | | | — | | |
Contributions to investments in real estate joint ventures
|
| | | | (23,173,863) | | | | | | (24,123,754) | | |
Distributions from investments in real estate joint ventures, net of change
in distributions receivable |
| | | | 29,717,261 | | | | | | 17,843,707 | | |
Amortization of organizational costs
|
| | | | 11,605 | | | | | | 11,691 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Due to related parties
|
| | | | (9,087,191) | | | | | | 7,021,228 | | |
Due from related parties
|
| | | | 9,411,320 | | | | | | (4,624,895) | | |
Accounts payable
|
| | | | 137,515 | | | | | | 8,427 | | |
Management fees payable
|
| | | | 125 | | | | | | 103 | | |
Net cash provided by (used in) operating activities
|
| | | | 6,459,442 | | | | | | (4,276,338) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Distributions, net of change in distributions payable
|
| | | | (9,062,795) | | | | | | (9,888,148) | | |
Contributions, net of change in contributions received in advance
|
| | | | 2,220,221 | | | | | | 13,698,034 | | |
Redemptions, net of change in redemptions payable
|
| | | | (62,565) | | | | | | (2,010,496) | | |
Net cash (used in) provided by financing activities
|
| | | | (6,905,139) | | | | | | 1,799,390 | | |
Net decrease in cash during the period
|
| | | | (445,697) | | | | | | (2,476,948) | | |
Cash – beginning of period
|
| | | | 1,741,665 | | | | | | 2,478,345 | | |
Cash – end of period
|
| | | $ | 1,295,968 | | | | | $ | 1,397 | | |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 10.40%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
18%
|
|
| | | | | | |
Terminal cap rate
|
| |
7.75%
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$37.82 – 158.77 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 23,173,863 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Contributions to investments in real estate joint ventures
|
| | | $ | 24,123,754 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 11,442,572 | | |
|
Accrued preferred returns
|
| | | | 3,962,661 | | |
|
Other income
|
| | | | 4,467,952 | | |
|
Real estate operations, net
|
| | | | (15,056) | | |
|
Professional fees
|
| | | | (1,505,322) | | |
|
Interest expense
|
| | | | (3,150,043) | | |
|
Administration expense
|
| | | | (60,214) | | |
|
Organizational expenses
|
| | | | (29,394) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 15,113,156 | | |
|
Interest income
|
| | | $ | 13,668,077 | | |
|
Accrued preferred returns
|
| | | | 2,134,145 | | |
|
Other income (loss), net
|
| | | | (162,712) | | |
|
Professional fees
|
| | | | (1,149,540) | | |
|
Interest expense
|
| | | | (1,142,747) | | |
|
Administration expense
|
| | | | (83,439) | | |
|
Organizational expenses
|
| | | | (13,600) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 13,250,184 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 36,798,490 | | | | | | 17 | | |
Northeast
|
| | | | 28,553,389 | | | | | | 14 | | |
Pacific
|
| | | | 108,175,212 | | | | | | 51 | | |
Southeast
|
| | | | 16,828,187 | | | | | | 8 | | |
Southwest
|
| | | | 20,388,184 | | | | | | 10 | | |
Total
|
| | | $ | 210,743,462 | | | | | | 100 | | |
Entity
|
| |
Description
|
| |
Due from
|
| |||
MGA
|
| |
Investment related transactions
|
| | | $ | 14,180,433 | | |
MREC International Incentive Split, LP
|
| |
Investment related transactions
|
| | | | 748,005 | | |
NU
|
| |
Investment related transactions
|
| | | | 214,612 | | |
Various entities
|
| |
Investment related transactions
|
| | | | 12,767 | | |
| | | | | | | $ | 15,155,817 | | |
Entity
|
| |
Description
|
| |
Due to
|
| |||
Manager
|
| |
Professional fees
|
| | | $ | 287.00 | | |
UA
|
| |
Investment related transactions
|
| | | | 2,026,491 | | |
Mosaic Real Estate Credit, LLC
|
| |
Investment related transactions
|
| | | | 7,347,098 | | |
U2
|
| |
Investment related transactions
|
| | | | 8,583,786 | | |
MREC Domestic REIT Holdings, LLC
|
| |
Investment related transactions
|
| | | | 104,276 | | |
| | | | | | | $ | 18,061,938 | | |
Members’ Equity per Unit
|
| |
Class A/CX/CXR
|
| |
Class M/MR
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Members’ Equity per Unit, beginning of period
|
| |
$1,042.42
|
| | | | 951.05 | | | | | | 1,044.71 | | | | | | 1,057.68 | | | |||
Net investment income before management fees and incentive
|
| | | | 91.54 | | | | | | 82.88 | | | | | | 91.74 | | | | | | 93.09 | | |
Net unrealized depreciation and realized loss from real
estate joint ventures |
| | | | (12.97) | | | | | | (11.73) | | | | | | (12.98) | | | | | | (13.17) | | |
Management fees
|
| | | | — | | | | | | (17.93) | | | | | | — | | | | | | — | | |
Incentive
|
| | | | (19.64) | | | | | | — | | | | | | (19.69) | | | | | | — | | |
Distributions
|
| | | | (52.96) | | | | | | (62.70) | | | | | | (53.08) | | | | | | (70.68) | | |
Members’ Equity per Unit, end of period
|
| | | $ | 1,048.39 | | | | | | 941.57 | | | | | | 1,050.70 | | | | | | 1,066.92 | | |
Total Return(1)
|
| |
Class A/CX/CXR
|
| |
Class M/MR
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Before incentive and management fees
|
| | | | 7.73% | | | | | | 7.73% | | | | | | 7.73% | | | | | | 7.73% | | |
After incentive and management fees
|
| | | | 5.75% | | | | | | 5.73% | | | | | | 5.75% | | | | | | 7.73% | | |
Ratios(2)
|
| |
Class A/CX/CXR
|
| |
Class M/MR
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.40% | | | | | | 0.40% | | | | | | 0.40% | | | | | | 0.40% | | |
Incentive
|
| | | | 2.50% | | | | | | 0.00% | | | | | | 2.50% | | | | | | 0.00% | | |
Management fees
|
| | | | 0.00% | | | | | | 2.51% | | | | | | 0.00% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.90% | | | | | | 2.92% | | | | | | 2.91% | | | | | | 0.40% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 4.97% | | | | | | 4.97% | | | | | | 4.97% | | | | | | 4.97% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 7.87% | | | | | | 7.89% | | | | | | 7.87% | | | | | | 5.37% | | |
Net investment income, before incentive and management fees
|
| | | | 11.10% | | | | | | 11.11% | | | | | | 11.07% | | | | | | 11.08% | | |
Net investment income, after incentive and management fees
|
| | | | 8.60% | | | | | | 8.59% | | | | | | 8.57% | | | | | | 11.08% | | |
Members’ Equity per Unit
|
| |
Class A/CX/CXR
|
| |
Class M/MR
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Members’ Equity per Unit, beginning of period
|
| | | $ | 1,026.19 | | | | | | 955.33 | | | | | | 1,028.45 | | | | | | 1,036.11 | | |
Net investment income before management fees and incentive
|
| | | | 86.60 | | | | | | 80.25 | | | | | | 86.79 | | | | | | 87.61 | | |
Net unrealized depreciation from real estate joint ventures
|
| | | | (11.04) | | | | | | (10.36) | | | | | | (11.07) | | | | | | (11.14) | | |
Management fees
|
| | | | — | | | | | | (18.09) | | | | | | — | | | | | | — | | |
Incentive
|
| | | | (18.89) | | | | | | — | | | | | | (18.93) | | | | | | — | | |
Distributions
|
| | | | (44.84) | | | | | | (55.37) | | | | | | (44.94) | | | | | | (60.75) | | |
Members’ Equity per Unit, end of period
|
| | | $ | 1,038.02 | | | | | | 951.76 | | | | | | 1,040.30 | | | | | | 1,051.83 | | |
Total Return(1)
|
| |
Class A/CX/R
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Before incentive and management fees
|
| | | | 7.55% | | | | | | 7.55% | | | | | | 7.55% | | | | | | 7.55% | | |
After incentive and management fees
|
| | | | 5.62% | | | | | | 5.55% | | | | | | 5.62% | | | | | | 7.55% | | |
Ratios(2)
|
| |
Class A/CX/R
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.34% | | | | | | 0.34% | | | | | | 0.34% | | | | | | 0.34% | | |
Incentive
|
| | | | 2.44% | | | | | | 0.00% | | | | | | 2.44% | | | | | | 0.00% | | |
Management fees
|
| | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.77% | | | | | | 2.87% | | | | | | 2.78% | | | | | | 0.34% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 2.00% | | | | | | 2.00% | | | | | | 2.00% | | | | | | 2.00% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 4.77% | | | | | | 4.87% | | | | | | 4.78% | | | | | | 2.34% | | |
Net investment income, before incentive and management fees
|
| | | | 10.79% | | | | | | 10.74% | | | | | | 10.71% | | | | | | 10.76% | | |
Net investment income, after incentive and management fees
|
| | | | 8.36% | | | | | | 8.22% | | | | | | 8.28% | | | | | | 10.76% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $166,851,086)
|
| | | $ | 167,315,873 | | |
|
Cash
|
| | | | 1,741,665 | | |
|
Due from related parties
|
| | | | 24,567,137 | | |
|
Distributions receivable
|
| | | | 2,180,538 | | |
|
Organizational costs
|
| | | | 11,605 | | |
|
Total Assets
|
| | | | 195,816,818 | | |
| Liabilities | | | | | | | |
|
Due to related parties
|
| | | | 27,149,129 | | |
|
Distributions payable
|
| | | | 2,646,030 | | |
|
Accounts payable
|
| | | | 119,861 | | |
|
Management fees payable
|
| | | | 3,097 | | |
|
Total Liabilities
|
| | | | 29,918,117 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 165,898,701 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 195,816,818 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 3,484,191 | | | | | $ | 2,567,162 | | | | | | 1.5% | | |
MREC Shared Holdings General Partnership(1)
|
| | | | 117,448,814 | | | | | | 117,970,641 | | | | | | 71.1% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 35,625,903 | | | | | | 36,257,500 | | | | | | 21.9% | | |
MREC TE Holdings, LLC(1)
|
| | | | 10,292,178 | | | | | | 10,520,570 | | | | | | 6.3% | | |
Total
|
| | | $ | 166,851,086 | | | | | $ | 167,315,873 | | | | | | 100.9% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Preferred
Return Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of
Member’s Capital |
| |||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(4)
|
| | Orange Beach, AL | | |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 1,736,918 | | | | | | 1,736,918 | | | | | | 1.0% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III, LLC(4)
|
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 3,509,106 | | | | | | 3,509,106 | | | | | | 2.1% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 3,436,978 | | | | | | 3,442,258 | | | | | | 2.1% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartments, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 1,845,670 | | | | | | 1,857,908 | | | | | | 1.1% | | |
Mosaic Hawk Ridge Investor, LLC(4)
|
| | Winston Salem, NC | | |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 1,056,776 | | | | | | 1,063,053 | | | | | | 0.6% | | |
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 1,297,523 | | | | | | 1,305,861 | | | | | | 0.8% | | |
Mosaic VL Investor, LLC(4)
|
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 8,451,916 | | | | | | 8,540,291 | | | | | | 5.1% | | |
Mosaic Tex Ark Sunbelt, LLC(4)
|
| | Southaven, MS | | |
11/6/20
|
| |
N/A(7)
|
| |
12.00%
|
| | | | 3,012,469 | | | | | | 3,065,732 | | | | | | 1.8% | | |
MREC Sunbelt Porfolio Sub-Pool 1, LLC(4)
|
| | Mission, TX | | |
11/10/20
|
| |
N/A(7)
|
| |
12.00%
|
| | | | 28,938,583 | | | | | | 29,392,171 | | | | | | 17.7% | | |
| | | Corpus Christi, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(5)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(7)
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 8,783,642 | | | | | | 8,826,192 | | | | | | 5.3% | | |
Total
|
| | | | | | | | | | | | | | | $ | 62,069,581 | | | | | $ | 62,739,490 | | | | | | 37.7% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Member’s Equity |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai, LLC(2)
|
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | | 7,542 | | | | | | 599,474 | | | | | | 599,474 | | | | | | 599,474 | | | | | | 0.4% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
6/29/21
|
| |
Greater of LIBOR +
6.25% or 8.00%(8) |
| | | | 7,268,932 | | | | | | 6,234,633 | | | | | | 6,234,633 | | | | | | 6,234,633 | | | | | | 3.8% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR +
6.75% or 9.15% |
| | | | 4,116,589 | | | | | | 10,994,079 | | | | | | 11,045,236 | | | | | | 10,994,079 | | | | | | 6.6% | | |
Mosaic Sovereign Town Center,
LLC(2) |
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR
plus 8.20% or 9.20% |
| | | | 17,801,465 | | | | | | — | | | | | | (83,140) | | | | | | — | | | | | | 0.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 29,194,528 | | | | | | 17,828,186 | | | | | | 17,796,203 | | | | | | 17,828,186 | | | | | | 11% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| |
Sacramento, CA
|
| |
7/24/18
|
| |
7/23/21
|
| |
Greater of LIBOR +
9.89% or 10.89% |
| | | | 4,628,381 | | | | | | 3,092,182 | | | | | | 3,092,182 | | | | | | 3,092,182 | | | | | | 1.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 9,790,806 | | | | | | 9,777,343 | | | | | | 9,389,789 | | | | | | 9,777,343 | | | | | | 5.9% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 3,204,264 | | | | | | 3,199,124 | | | | | | 3,199,124 | | | | | | 3,199,124 | | | | | | 1.9% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR +
9.75% or 11.50% |
| | | | 7,555,238 | | | | | | 3,034,753 | | | | | | 3,008,281 | | | | | | 3,034,753 | | | | | | 1.8% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR +
8.25% or 9.25% |
| | | | 7,001,910 | | | | | | 5,628,737 | | | | | | 5,578,554 | | | | | | 5,628,737 | | | | | | 3.4% | | |
Mosaic Ketchum Resort, LLC(2)
|
| | Ketchum, ID | | |
12/6/19
|
| |
12/5/22
|
| |
Greater of LIBOR +
9.00% or 11.25% |
| | | | 17,831,134 | | | | | | — | | | | | | (115,358) | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort, LLC(2)
|
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR +
7.56% or 9.99% |
| | | | 11,748,967 | | | | | | 6,363,996 | | | | | | 6,246,373 | | | | | | 6,363,996 | | | | | | 3.8% | | |
Mosaic Portland Hotel, LLC(2)
|
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR +
8.50% or 11.00% |
| | | | 136,477,898 | | | | | | 6,464,372 | | | | | | 5,803,176 | | | | | | 6,464,372 | | | | | | 3.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 198,238,598 | | | | | | 37,560,507 | | | | | | 36,202,121 | | | | | | 37,560,507 | | | | | | 22.6% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/31/19(6)
|
| |
13.00%
|
| | | | 10,891,222 | | | | | | 10,290,201 | | | | | | 12,921,284 | | | | | | 10,290,201 | | | | | | 6.2% | | |
Mosaic Parkland, LLC(2)
|
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
Greater of LIBOR +
8.00% or 10.25% |
| | | | 741,728 | | | | | | 379,912 | | | | | | 374,721 | | | | | | 379,912 | | | | | | 0.2% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 11,632,950 | | | | | | 10,670,113 | | | | | | 13,296,005 | | | | | | 10,670,113 | | | | | | 6.4% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway, LLC(2)
|
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
Greater or LIBOR +
7.25% or 8.91% |
| | | | 4,895,403 | | | | | | 4,887,406 | | | | | | 4,887,406 | | | | | | 4,887,406 | | | | | | 2.9% | | |
Mosaic Metro Air Park, LLC(2)
|
| |
Sacramento, CA
|
| |
2/28/18
|
| |
2/29/21
|
| |
11.00% (9)
|
| | | | 5,105,666 | | | | | | 5,229,366 | | | | | | 5,229,366 | | | | | | 5,229,366 | | | | | | 3.2% | | |
Mosaic DTLA Parking, LLC(2)
|
| |
Los Angeles, CA
|
| |
6/26/19
|
| |
6/26/21
|
| |
Greater of LIBOR +
8.25% or 10.75% (9) |
| | | | 5,993,160 | | | | | | 5,467,093 | | | | | | 5,448,752 | | | | | | 5,467,093 | | | | | | 3.3% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR +
7.75% or 9.60% |
| | | | 3,990,495 | | | | | | 1,392,993 | | | | | | 1,393,109 | | | | | | 1,392,993 | | | | | | 0.8% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR +
8.00% or 10.02% |
| | | | 44,503,662 | | | | | | 9,235,874 | | | | | | 9,111,783 | | | | | | 9,235,874 | | | | | | 5.6% | | |
Mosaic Retreat, LLC(2)
|
| |
Midway City, CA
|
| |
6/10/19
|
| |
7/1/21
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 2,575,506 | | | | | | 2,361,368 | | | | | | 2,410,945 | | | | | | 2,361,368 | | | | | | 1.4% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 16,318,010 | | | | | | 13,507,024 | | | | | | 13,432,654 | | | | | | 13,507,024 | | | | | | 8.1% | | |
Mosaic West Cheyenne, LLC(2)
|
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
Greater of LIBOR +
7.25% or 9.27% |
| | | | 4,168,510 | | | | | | 3,901,013 | | | | | | 3,893,940 | | | | | | 3,901,013 | | | | | | 2.4% | | |
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
9/1/21
|
| |
Greater of LIBOR +
6.25% or 8.75% |
| | | | 4,012,747 | | | | | | 3,666,516 | | | | | | 3,639,604 | | | | | | 3,666,516 | | | | | | 2.2% | | |
Merced Station(2)
|
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
7.25% or 9.35% |
| | | | 20,397,512 | | | | | | 3,194,814 | | | | | | 3,097,496 | | | | | | 3,194,814 | | | | | | 1.9% | | |
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR +
4.75% or 6.40% |
| | | | 3,560,293 | | | | | | 3,730,853 | | | | | | 3,688,973 | | | | | | 3,730,853 | | | | | | 2.2% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 115,520,964 | | | | | | 56,574,321 | | | | | | 56,234,028 | | | | | | 56,574,320 | | | | | | 34.0% | | |
Total
|
| | | | | | | | | | | | | | | $ | 354,587,040 | | | | | $ | 122,633,127 | | | | | $ | 123,528,357 | | | | | $ | 122,633,126 | | | | | | 73.8% | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Single Family Residence Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(3)
|
| |
New York, NY
|
| |
6/4/15
|
| | | | 3,091,559 | | | | | | 2,470,799 | | | | | | 1.5% | | |
Subtotal
|
| | | | | | | | | | 3,091,559 | | | | | | 2,470,799 | | | | | | 1.5% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| |
Windsor, CA
|
| |
3/31/17
|
| | | | 11,930,863 | | | | | | 9,197,424 | | | | | | 5.5% | | |
Subtotal
|
| | | | | | | | | | 11,930,863 | | | | | | 9,197,424 | | | | | | 5.5% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 7,594,240 | | | | | | 7,569,290 | | | | | | 4.6% | | |
Subtotal
|
| | | | | | | | | | 7,594,240 | | | | | | 7,569,290 | | | | | | 4.6% | | |
Total
|
| | | $ | 22,616,662 | | | | | $ | 19,237,513 | | | | | | 11.6% | | | ||||||
Total investments held by investments in real estate joint ventures
|
| | | $ | 208,214,600 | | | | | $ | 204,610,129 | | | | | | 123.1% | | | ||||||
Other net liabilities of investments in real estate joint ventures
|
| | | $ | (41,363,514) | | | | | $ | (37,294,256) | | | | | | -22.5% | | | ||||||
Total investments in real estate joint ventures
|
| | | $ | 166,851,086 | | | | | $ | 167,315,873 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 18,119,690 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 257,903 | | |
|
Administration expense
|
| | | | 290,586 | | |
|
Organizational expenses
|
| | | | 15,616 | | |
|
Management fees
|
| | | | 12,058 | | |
|
Total Fund Expenses
|
| | | | 576,163 | | |
|
Net Investment Income
|
| | | | 17,543,527 | | |
|
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (1,593,111) | | |
|
Net Income
|
| | | $ | 15,950,416 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class M
Members |
| |
Class R
Members |
| |
Class QC
Members |
| |
Class Z
Members |
| |
Total Members’
Equity |
| |||||||||||||||||||||
Members’ Equity, beginning
of year |
| | | $ | 497,382 | | | | | $ | 139,791,656 | | | | | $ | 464,521 | | | | | $ | — | | | | | $ | 814,760 | | | | | $ | 2,967,305 | | | | | $ | 144,535,624 | | |
Net income
|
| | | | — | | | | | | 15,520,650 | | | | | | 36,203 | | | | | | — | | | | | | 83,144 | | | | | | 310,419 | | | | | | 15,950,416 | | |
Incentive allocation
|
| | | | 3,900,968 | | | | | | (3,880,182) | | | | | | — | | | | | | — | | | | | | (20,786) | | | | | | — | | | | | | — | | |
Distributions
|
| | | | (3,102,703) | | | | | | (9,310,236) | | | | | | (38,243) | | | | | | — | | | | | | (49,434) | | | | | | (246,728) | | | | | | (12,747,344) | | |
Contributions
|
| | | | — | | | | | | 17,986,828 | | | | | | 30,920 | | | | | | — | | | | | | 4,979 | | | | | | 137,278 | | | | | | 18,160,005 | | |
Transfers resulting from redemption requests
|
| | | | — | | | | | | (25,136,469) | | | | | | (56,477) | | | | | | 25,192,946 | | | | | | — | | | | | | — | | | | | | — | | |
Members’ Equity, end of year
|
| | | $ | 1,295,647 | | | | | $ | 134,972,247 | | | | | $ | 436,924 | | | | | $ | 25,192,946 | | | | | $ | 832,663 | | | | | $ | 3,168,274 | | | | | $ | 165,898,701 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 15,950,416 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (18,119,690) | | |
|
Change in unrealized depreciation from real estate joint ventures
|
| | | | 1,593,111 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (37,440,074) | | |
|
Distributions from investments in real estate joint ventures, net of change in distributions
receivable |
| | | | 33,322,554 | | |
|
Amortization of organizational costs
|
| | | | 15,616 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | 17,301,991 | | |
|
Due from related parties
|
| | | | (14,451,540) | | |
|
Accounts payable
|
| | | | (27,643) | | |
|
Management fees payable
|
| | | | 159 | | |
|
Net cash used in operating activities
|
| | | | (1,855,100) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (12,481,089) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 15,610,005 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (2,010,496) | | |
|
Net cash provided by financing activities
|
| | | | 1,118,420 | | |
|
Net decrease in cash during the year
|
| | | | (736,680) | | |
|
Cash – beginning of year
|
| | | | 2,478,345 | | |
|
Cash – end of year
|
| | |
$
|
1,741,665
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 11.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.25% – 18.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 11.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Single Family Residence Development
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$806.12 PSF
|
|
|
Mixed-Use Development
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$93.09 PSF
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$39.02 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 37,440,074 | | |
|
Transfers in (out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 16,561,306 | | |
|
Accrued preferred returns
|
| | | | 3,345,708 | | |
|
Other income
|
| | | | 6,547,757 | | |
|
Professional fees
|
| | | | (1,772,122) | | |
|
Interest expense
|
| | | | (6,351,211) | | |
|
Administration expense
|
| | | | (193,671) | | |
|
Organizational expenses
|
| | | | (18,077) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 18,119,690 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 24,388,289 | | | | | | 12 | | |
Northeast
|
| | | | 26,971,902 | | | | | | 13 | | |
Pacific
|
| | | | 88,509,890 | | | | | | 43 | | |
Southeast
|
| | | | 25,832,120 | | | | | | 13 | | |
Southwest
|
| | | | 38,907,928 | | | | | | 19 | | |
Total
|
| | | $ | 204,610,129 | | | | | | 100 | | |
Entity
|
| |
Description
|
| |
Due from
|
| |||
GA
|
| |
Investment related transactions
|
| | | $ | 23,708,340 | | |
Mosaic Real Estate Credit Offshore, LP
|
| |
Investment related transactions
|
| | | | 748,006 | | |
NU
|
| |
Investment related transactions
|
| | | | 98,791 | | |
Various entities
|
| |
Investment related transactions
|
| | | | 12,000 | | |
| | | | | | | $ | 24,567,137 | | |
Entity
|
| |
Description
|
| |
Due to
|
| |||
Manager
|
| | Professional fees | | | | $ | 287.00 | | |
Various entities
|
| | Professional fees | | | | | 104,277 | | |
UA
|
| |
Investment related transactions
|
| | | | 1,207,806 | | |
Mosaic Real Estate Credit, LLC
|
| |
Investment related transactions
|
| | | | 9,199,358 | | |
U2
|
| |
Investment related transactions
|
| | | | 16,151,243 | | |
MREC TE REIT Pref Holdings, LLC
|
| |
Investment related transactions
|
| | | | 486,158 | | |
| | | | | | | $ | 27,149,129 | | |
Members’ Equity per Unit
|
| |
Class A/CX/R
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | $ | 1,026.19 | | | | | | 955.33 | | | | | | 1,028.45 | | | | | | 1,036.11 | | |
Net investment income before management fees and
incentive |
| | | | 116.81 | | | | | | 107.99 | | | | | | 117.07 | | | | | | 118.23 | | |
Net unrealized depreciation from real estate joint
ventures |
| | | | (12.34) | | | | | | (11.61) | | | | | | (12.38) | | | | | | (12.40) | | |
Management fees
|
| | | | — | | | | | | (24.14) | | | | | | — | | | | | | — | | |
Incentive
|
| | | | (26.12) | | | | | | — | | | | | | (26.17) | | | | | | — | | |
Distributions
|
| | | | (62.12) | | | | | | (76.52) | | | | | | (62.26) | | | | | | (84.26) | | |
Members’ Equity per Unit, end of year
|
| | | $ | 1,042.42 | | | | | | 951.05 | | | | | | 1,044.71 | | | | | | 1,057.68 | | |
Total Return(1)
|
| |
Class A/CX/R
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Before incentive and management fees
|
| | | | 10.55% | | | | | | 10.55% | | | | | | 10.55% | | | | | | 10.55% | | |
After incentive and management fees
|
| | | | 7.82% | | | | | | 7.81% | | | | | | 7.82% | | | | | | 10.55% | | |
Ratios(2)
|
| |
Class A/CX/R
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.36% | | | | | | 0.36% | | | | | | 0.36% | | | | | | 0.36% | | |
Incentive
|
| | | | 2.52% | | | | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | |
Management fees
|
| | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 2.88% | | | | | | 2.89% | | | | | | 2.89% | | | | | | 0.36% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 5.27% | | | | | | 5.27% | | | | | | 5.27% | | | | | | 5.27% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 8.15% | | | | | | 8.16% | | | | | | 8.16% | | | | | | 5.63% | | |
Net investment income, before incentive and management fees
|
| | | | 11.10% | | | | | | 11.08% | | | | | | 11.07% | | | | | | 11.10% | | |
Net investment income, after incentive and management fees
|
| | | | 8.57% | | | | | | 8.56% | | | | | | 8.54% | | | | | | 11.10% | | |
| Assets | | | | | | | |
|
Investments in real estate related joint ventures, at fair value (cost $146,481,905)
|
| | | $ | 148,539,804 | | |
|
Cash
|
| | | | 2,478,345 | | |
|
Due from related parties
|
| | | | 10,115,597 | | |
|
Distributions receivable
|
| | | | 312,508 | | |
|
Organizational costs
|
| | | | 27,221 | | |
|
Total Assets
|
| | | | 161,473,475 | | |
| Liabilities | | | | | | | |
|
Due to related parties
|
| | | | 9,847,138 | | |
|
Contributions received in advance
|
| | | | 2,550,000 | | |
|
Distributions payable
|
| | | | 2,379,775 | | |
|
Redemptions payable
|
| | | | 2,010,496 | | |
|
Accounts payable
|
| | | | 147,504 | | |
|
Management fees payable
|
| | | | 2,938 | | |
|
Total Liabilities
|
| | | | 16,937,851 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 144,535,624 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 161,473,475 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 3,523,374 | | | | | $ | 2,854,184 | | | | | | 2.0% | | |
MREC Shared Holdings General Partnership(1)
|
| | | | 119,923,620 | | | | | | 122,284,665 | | | | | | 84.6% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 14,944,218 | | | | | | 15,135,937 | | | | | | 10.5% | | |
MREC TE Holdings, LLC(1)
|
| | | | 8,090,693 | | | | | | 8,265,018 | | | | | | 5.7% | | |
Total
|
| | | $ | 146,481,905 | | | | | $ | 148,539,804 | | | | | | 102.8% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Member’s Capital |
| |||||||||
Single Family Residence Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(3)
|
| | New York, NY | | |
6/4/15
|
| |
6/30/17(6)
|
| |
12.50 – 15.00%
|
| | | $ | 3,720,009 | | | | | $ | 2,582,751 | | | | | | 1.8% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(4)
|
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 4,963,422 | | | | | | 4,963,422 | | | | | | 3.4% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III, LLC(4)
|
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 3,233,777 | | | | | | 3,233,777 | | | | | | 2.2% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
12.00%
|
| | | | 3,162,089 | | | | | | 3,172,243 | | | | | | 2.2% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartment, LLC(4)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 1,589,885 | | | | | | 1,610,325 | | | | | | 1.1% | | |
Mosaic Hawk Ridge, LLC(4)
|
| |
Winston Salem, NC
|
| |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 954,906 | | | | | | 964,906 | | | | | | 0.7% | | |
Mosaic 1800 Ashley, LLC(4)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 1,174,332 | | | | | | 1,187,171 | | | | | | 0.8% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(5)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(7)
|
| |
LIBOR(16) + 11.00%
|
| | | | 8,249,183 | | | | | | 8,333,474 | | | | | | 5.8% | | |
Total
|
| | | | | | | | | | | | | | | $ | 27,047,603 | | | | | $ | 26,048,069 | | | | | | 18.0% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Member’s Equity |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/20
|
| |
9.13%
|
| | | | 4,049,069 | | | | | | 3,270,934 | | | | | | 3,270,934 | | | | | | 3,270,934 | | | | | | 2.3% | | |
Mosaic Timbers Kiawah,
LLC(2) |
| | Kiawah Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 3,660,250 | | | | | | 3,478,217 | | | | | | 3,473,269 | | | | | | 3,478,217 | | | | | | 2.4% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
12/29/20
|
| |
LIBOR + 8.75%
|
| | | | 7,165,752 | | | | | | 3,709,470 | | | | | | 3,709,470 | | | | | | 3,709,470 | | | | | | 2.6% | | |
Mosaic North Bergen, LLC(2)
|
| | North Bergen, NJ | | |
8/7/19
|
| |
8/7/22
|
| |
LIBOR(13) + 8.00%
|
| | | | 16,232,621 | | | | | | 2,925,041 | | | | | | 2,854,589 | | | | | | 2,925,041 | | | | | | 2.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 31,107,692 | | | | | | 13,383,662 | | | | | | 13,308,262 | | | | | | 13,383,662 | | | | | | 9.3% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel,
LLC(2) |
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR + 9.89%
|
| | | | 5,941,299 | | | | | | 1,248,004 | | | | | | 1,231,782 | | | | | | 1,248,004 | | | | | | 0.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR + 11.00%
|
| | | | 10,529,268 | | | | | | 6,582,359 | | | | | | 5,784,591 | | | | | | 6,582,359 | | | | | | 4.6% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
15.00%
|
| | | | 3,158,780 | | | | | | 2,900,959 | | | | | | 2,900,959 | | | | | | 2,900,959 | | | | | | 2.0% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| | Los Angeles, CA | | |
11/16/18
|
| |
11/15/21
|
| |
LIBOR + 9.75%
|
| | | | 7,447,995 | | | | | | 400,714 | | | | | | 349,710 | | | | | | 400,714 | | | | | | 0.3% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
LIBOR(8) + 8.25%
|
| | | | 1,006,130 | | | | | | 934,896 | | | | | | 851,517 | | | | | | 934,896 | | | | | | 0.6% | | |
Mosaic Ketchum Resort,
LLC(2) |
| | Ketchum, ID | | |
12/5/19
|
| |
12/5/22
|
| |
LIBOR(9) + 9.00%
|
| | | | 17,578,028 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort,
LLC(2) |
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
LIBOR(10) + 7.56%
|
| | | | 48,259,144 | | | | | | 6,804,901 | | | | | | 6,608,926 | | | | | | 6,804,901 | | | | | | 4.7% | | |
Mosaic Portland Hotel,
LLC(2) |
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
LIBOR(11) + 8.50%
|
| | | | 134,540,644 | | | | | | 4,789,687 | | | | | | 3,881,278 | | | | | | 4,789,687 | | | | | | 3.3% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 228,461,288 | | | | | | 23,661,520 | | | | | | 21,608,763 | | | | | | 23,661,520 | | | | | | 16.4% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| |
3/31/2019(6)
|
| |
13.00%
|
| | | | 10,192,039 | | | | | | 8,920,630 | | | | | | 10,192,045 | | | | | | 8,920,630 | | | | | | 6.2% | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/30/2019(6)
|
| |
13.00%
|
| | | | 10,736,625 | | | | | | 10,218,683 | | | | | | 10,534,118 | | | | | | 10,218,683 | | | | | | 7.1% | | |
Mosaic Righetti Ranch,
LLC(2) |
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
1/30/20
|
| |
10.00%
|
| | | | 7,165,752 | | | | | | 3,617,921 | | | | | | 3,617,921 | | | | | | 3,617,921 | | | | | | 2.5% | | |
Mosaic Parkland, LLC(2)
|
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
LIBOR(9) + 8.00%
|
| | | | 4,387,195 | | | | | | 4,196,454 | | | | | | 4,132,061 | | | | | | 4,196,454 | | | | | | 2.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 32,481,611 | | | | | | 26,953,688 | | | | | | 28,476,145 | | | | | | 26,953,688 | | | | | | 18.7% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
LIBOR + 8.75%
|
| | | | 6,345,472 | | | | | | 6,313,810 | | | | | | 6,313,810 | | | | | | 6,313,810 | | | | | | 4.4% | | |
Mosaic Federal Way Mezz, LLC(2)
|
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 6,201,619 | | | | | | 6,086,083 | | | | | | 6,086,083 | | | | | | 6,086,083 | | | | | | 4.2% | | |
Mosaic Park DTLA, LLC(2)
|
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 7,604,471 | | | | | | 6,195,048 | | | | | | 6,149,275 | | | | | | 6,195,048 | | | | | | 4.3% | | |
Mosaic River Rock, LLC(2)
|
| | Sacramento, CA | | |
2/28/18
|
| |
2/29/20
|
| |
11.00%
|
| | | | 5,033,193 | | | | | | 4,889,241 | | | | | | 4,889,241 | | | | | | 4,889,241 | | | | | | 3.4% | | |
Mosaic DTLA Parking,
LLC(2) |
| | Los Angeles, CA | | |
6/26/19
|
| |
6/26/21
|
| |
LIBOR(11) + 8.25%
|
| | | | 5,908,089 | | | | | | 5,205,718 | | | | | | 5,150,704 | | | | | | 5,205,718 | | | | | | 3.6% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
LIBOR(14) + 7.75%
|
| | | | 19,669,257 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
LIBOR + 8.00%
|
| | | | 5,897,412 | | | | | | 5,782,007 | | | | | | 5,587,058 | | | | | | 5,782,007 | | | | | | 4.0% | | |
Mosaic Retreat, LLC(2)
|
| | Midway City, CA | | |
6/10/19
|
| |
7/1/21
|
| |
LIBOR(15) + 8.50%
|
| | | | 6,300,012 | | | | | | 1,226,741 | | | | | | 1,182,351 | | | | | | 1,226,741 | | | | | | 0.8% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
LIBOR(15) + 8.50%
|
| | | | 16,086,381 | | | | | | 14,495,617 | | | | | | 14,367,950 | | | | | | 14,495,617 | | | | | | 10.0% | | |
Mosaic West Cheyenne,
LLC(2) |
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
LIBOR + 7.25%
|
| | | | 10,273,348 | | | | | | 2,008,725 | | | | | | 1,916,777 | | | | | | 2,008,725 | | | | | | 1.4% | | |
Mosaic 1111 Sunset, LLC(2)
|
| | Los Angeles, CA | | |
8/29/19
|
| |
9/1/21
|
| |
LIBOR(11) + 6.25%
|
| | | | 6,804,185 | | | | | | 6,639,220 | | | | | | 6,573,391 | | | | | | 6,639,220 | | | | | | 4.6% | | |
Mosaic Merced Station,
LLC(2) |
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
LIBOR(12) + 7.25%
|
| | | | 1,362,338 | | | | | | 1,157,104 | | | | | | 965,022 | | | | | | 1,157,104 | | | | | | 0.8% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 97,485,777 | | | | | | 59,999,314 | | | | | | 59,181,662 | | | | | | 59,999,314 | | | | | | 41.5% | | |
Total
|
| | | | | | | | | | | | | | | $ | 389,536,368 | | | | | $ | 123,998,184 | | | | | $ | 122,574,832 | | | | | $ | 123,998,184 | | | | | | 85.8% | | |
Total investments held by investments
in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 149,622,435 | | | | | $ | 150,046,253 | | | | | | 103.8% | | |
Other net assets of investments in real estate joint ventures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (3,140,530) | | | | | $ | (1,506,449) | | | | | | -1.0% | | |
Total investments in investments in real estate joint ventures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 146,481,905 | | | | | $ | 148,539,804 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 14,469,586 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 170,198 | | |
|
Administration expense
|
| | | | 115,916 | | |
|
Organizational expenses
|
| | | | 15,573 | | |
|
Management fees
|
| | | | 6,791 | | |
|
Total Fund Expenses
|
| | | | 308,478 | | |
|
Net Investment Income
|
| | | | 14,161,108 | | |
|
Realized Gain from Real Estate Joint Ventures
|
| | | | 654 | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 687,955 | | |
|
Net Income
|
| | | $ | 14,849,717 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class M
Members |
| |
Class QC
Members |
| |
Class Z
Members |
| |
Total Members’
Equity |
| ||||||||||||||||||
Members’ Equity, beginning of year
|
| | | $ | 149,144 | | | | | $ | 95,200,217 | | | | | $ | 81,822 | | | | | $ | 799,283 | | | | | $ | 2,705,807 | | | | | $ | 98,936,273 | | |
Net income
|
| | | | — | | | | | | 14,380,639 | | | | | | 24,418 | | | | | | 99,142 | | | | | | 345,518 | | | | | | 14,849,717 | | |
Incentive allocation
|
| | | | 3,619,945 | | | | | | (3,595,160) | | | | | | — | | | | | | (24,785) | | | | | | — | | | | | | — | | |
Distributions
|
| | | | (3,271,707) | | | | | | (9,750,102) | | | | | | (32,201) | | | | | | (65,018) | | | | | | (304,151) | | | | | | (13,423,179) | | |
Contributions
|
| | | | — | | | | | | 45,566,558 | | | | | | 390,482 | | | | | | 6,138 | | | | | | 220,131 | | | | | | 46,183,309 | | |
Redemptions
|
| | | | — | | | | | | (2,010,496) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,010,496) | | |
Members’ Equity, end of
year |
| | | $ | 497,382 | | | | | $ | 139,791,656 | | | | | $ | 464,521 | | | | | $ | 814,760 | | | | | $ | 2,967,305 | | | | | $ | 144,535,624 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 14,849,717 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | |||||
|
Net investment income from real estate joint ventures
|
| | | | (14,469,586) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (687,955) | | |
|
Realized gain from real estate joint ventures
|
| | | | (654) | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (72,659,525) | | |
|
Distributions from investments in real estate joint ventures, net of change in distributions
receivable |
| | | | 40,311,343 | | |
|
Amortization of organizational costs
|
| | | | 15,573 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | (652,632) | | |
|
Due from related parties
|
| | | | (2,243,152) | | |
|
Accounts payable
|
| | | | 32,863 | | |
|
Management fee payable
|
| | | | 2,413 | | |
|
Net cash used in operating activities
|
| | | | (35,501,595) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (13,117,023) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 47,000,809 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (649,781) | | |
|
Net cash provided by financing activities
|
| | | | 33,234,005 | | |
|
Net decrease in cash during the year
|
| | | | (2,267,590) | | |
|
Cash – beginning of year
|
| | | | 4,745,935 | | |
|
Cash – end of year
|
| | |
$
|
2,478,345
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13 – 10.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.99 – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.00 – 10.25%
|
|
|
Land Development
|
| |
Market Comparable Approach
|
| |
Price per square foot
|
| |
$38 – 161
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.75 – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
13.00%
|
|
|
Balance at January 1, 2019
|
| | | $ | 101,235,336 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 72,659,525 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (40,513,252) | | |
|
Net investment income from real estate joint ventures
|
| | | | 14,469,586 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 687,955 | | |
|
Realized gain from real estate joint ventures
|
| | | | 654 | | |
|
Balance at December 31, 2019
|
| | | $ | 148,539,804 | | |
|
Interest income
|
| | | $ | 13,687,635 | | |
|
Accrued preferred returns
|
| | | | 1,754,339 | | |
|
Other income
|
| | | | 240,490 | | |
|
Professional fees
|
| | | | (790,835) | | |
|
Interest expense
|
| | | | (337,208) | | |
|
Administration expense
|
| | | | (66,987) | | |
|
Organizational expenses
|
| | | | (17,848) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 14,469,586 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 20,909,443 | | | | | | 14 | | |
Northeast
|
| | | | 20,003,409 | | | | | | 13 | | |
Pacific
|
| | | | 83,912,911 | | | | | | 56 | | |
Southeast
|
| | | | 20,709,206 | | | | | | 14 | | |
Southwest
|
| | | | 4,511,284 | | | | | | 3 | | |
Total
|
| | | $ | 150,046,253 | | | | | | 100 | | |
Members’ Equity per Unit
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | | 1014.35 | | | | | | 965.03 | | | | | | 1016.59 | | | | | | 1020.76 | | |
Net investment income before management fees and incentive
|
| | | | 116.16 | | | | | | 109.6 | | | | | | 116.41 | | | | | | 117.39 | | |
Net gain from real estate joint ventures
|
| | | | 9.33 | | | | | | 8.99 | | | | | | 9.35 | | | | | | 9.4 | | |
Management fees
|
| | | | — | | | | | | (24.53) | | | | | | — | | | | | | — | | |
Incentive
|
| | | | (31.37) | | | | | | — | | | | | | (31.44) | | | | | | — | | |
Distributions
|
| | | | (82.28) | | | | | | (103.76) | | | | | | (82.46) | | | | | | (111.44) | | |
Members’ Equity per Unit, end of year
|
| | | | 1026.19 | | | | | | 955.33 | | | | | | 1028.45 | | | | | | 1036.11 | | |
Total Return(1)
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Before incentive and management fees
|
| | | | 12.91% | | | | | | 12.91% | | | | | | 12.91% | | | | | | 12.91% | | |
After incentive and management fees
|
| | | | 9.55% | | | | | | 10.12% | | | | | | 9.55% | | | | | | 12.91% | | |
Ratios(2)
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | |
Incentive
|
| | | | 3.02% | | | | | | 0.00% | | | | | | 3.05% | | | | | | 0.00% | | |
Management fees
|
| | | | 0.00% | | | | | | 2.53% | | | | | | 0.00% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 3.26% | | | | | | 2.79% | | | | | | 3.30% | | | | | | 0.25% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 4.93% | | | | | | 4.93% | | | | | | 4.93% | | | | | | 4.93% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 8.19% | | | | | | 7.72% | | | | | | 8.24% | | | | | | 5.18% | | |
Net investment income, before incentive and management fees
|
| | | | 11.50% | | | | | | 10.83% | | | | | | 11.72% | | | | | | 11.68% | | |
Net investment income, after incentive and management fees
|
| | | | 8.49% | | | | | | 8.30% | | | | | | 8.67% | | | | | | 11.68% | | |
| Assets | | | | | | | |
|
Investments in real estate related joint ventures, at fair value (cost $99,865,394)
|
| | | $ | 101,235,336 | | |
|
Cash
|
| | | | 4,745,935 | | |
|
Distributions receivable
|
| | | | 110,598 | | |
|
Organizational costs
|
| | | | 42,794 | | |
|
Total Assets
|
| | | | 106,134,663 | | |
| Liabilities | | | | | | | |
|
Due to related parties, net
|
| | | | 2,627,326 | | |
|
Distributions payable
|
| | | | 2,073,619 | | |
|
Contributions received in advance
|
| | | | 1,732,500 | | |
|
Redemptions payable
|
| | | | 649,781 | | |
|
Accounts payable
|
| | | | 114,639 | | |
|
Management fees payable
|
| | | | 525 | | |
|
Total Liabilities
|
| | | | 7,198,390 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Members’ Equity
|
| | | | 98,936,273 | | |
|
Total Liabilities and Members’ Equity
|
| | | $ | 106,134,663 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Members’ Equity |
| |||||||||
MREC NU Asset Pool, LLC(1)
|
| | | $ | 3,262,620 | | | | | $ | 3,307,376 | | | | | | 3.4% | | |
MREC Shared Holdings General Partnership(1)
|
| | | | 78,802,152 | | | | | | 79,883,151 | | | | | | 80.7% | | |
MREC TE REIT Pref Holdings, LLC(1)
|
| | | | 11,257,938 | | | | | | 11,412,373 | | | | | | 11.5% | | |
MREC TE Holdings, LLC(1)
|
| | | | 6,542,684 | | | | | | 6,632,436 | | | | | | 6.7% | | |
Total
|
| | | $ | 99,865,394 | | | | | $ | 101,235,336 | | | | | | 102.3% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity Date
|
| |
Preferred
Return Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of
Member’s Capital |
| |||||||||
Single Family Residence Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(3)
|
| | New York, NY | | |
6/4/15
|
| |
6/30/17(6)
|
| |
12.50 – 15.00%
|
| | | $ | 3,411,497 | | | | | $ | 3,036,719 | | | | | | 3.1% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(4)
|
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
8.00 – 12.00%
|
| | | | 4,751,758 | | | | | | 4,751,758 | | | | | | 4.8% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(4) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
8.00 – 12.00%
|
| | | | 3,095,875 | | | | | | 3,095,875 | | | | | | 3.1% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(4)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
8.00 – 12.00%
|
| | | | 3,019,284 | | | | | | 3,033,996 | | | | | | 3.1% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(5)
|
| |
Pope Valley, CA
|
| |
12/13/18
|
| |
N/A(8)
|
| |
LIBOR+11.00%
|
| | | | 6,470,745 | | | | | | 6,592,819 | | | | | | 6.7% | | |
Total
|
| | | | | | | | | | | | | | | $ | 20,749,159 | | | | | $ | 20,511,167 | | | | | | 20.7% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity Date
|
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized Cost
|
| |
Fair Value
|
| |
% of
Member’s Equity |
| |||||||||||||||
Condominium Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Tahoe Beach Club, LLC(2)
|
| | Gardnerville, NV | | |
12/28/16
|
| |
12/31/18(7)
|
| |
13.00%
|
| | | $ | 12,431,582 | | | | | $ | 9,347,918 | | | | | $ | 9,347,918 | | | | | $ | 9,347,918 | | | | | | 9.4% | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/19
|
| |
9.13%
|
| | | | 6,628,369 | | | | | | 5,139,067 | | | | | | 5,139,067 | | | | | | 5,139,067 | | | | | | 4.8% | | |
Mosaic Timbers Kiawah,
LLC(2) |
| | Kiawah Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 5,873,900 | | | | | | 5,583,540 | | | | | | 5,635,492 | | | | | | 5,696,749 | | | | | | 5.8% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity Date
|
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized Cost
|
| |
Fair Value
|
| |
% of
Member’s Equity |
| |||||||||||||||
Mosaic Riverwalk, LLC(2)
|
| |
Tampa, FL
|
| |
12/21/18
|
| |
12/20/19
|
| |
LIBOR + 8.75%
|
| | | | 7,001,695 | | | | | | 2,288,917 | | | | | | 2,153,042 | | | | | | 2,288,917 | | | | | | 2.3% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 31,935,546 | | | | | | 22,359,442 | | | | | | 22,275,519 | | | | | | 22,472,651 | | | | | | 22.2% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR + 9.89%
|
| | | | 11,202,713 | | | | | | 2,247,801 | | | | | | 2,204,004 | | | | | | 2,247,801 | | | | | | 2.3% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR+11.00%
|
| | | | 10,288,205 | | | | | | 2,164,181 | | | | | | 986,364 | | | | | | 2,164,181 | | | | | | 2.2% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
8.00%
|
| | | | 3,086,462 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
LIBOR + 9.75%
|
| | | | 14,554,953 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 39,132,333 | | | | | | 4,411,982 | | | | | | 3,190,368 | | | | | | 4,411,982 | | | | | | 4.5% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| |
3/31/19
|
| |
13.00%
|
| | | | 8,517,740 | | | | | | 8,374,024 | | | | | | 8,374,024 | | | | | | 8,374,024 | | | | | | 8.5% | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/30/19
|
| |
13.00%
|
| | | | 8,946,278 | | | | | | 8,641,649 | | | | | | 8,641,649 | | | | | | 8,641,649 | | | | | | 8.7% | | |
Mosaic Righetti Ranch,
LLC(2) |
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
9/30/19
|
| |
10.00%
|
| | | | 7,001,695 | | | | | | 3,339,756 | | | | | | 3,236,389 | | | | | | 3,339,756 | | | | | | 3.4% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 24,465,713 | | | | | | 20,355,429 | | | | | | 20,252,062 | | | | | | 20,355,429 | | | | | | 20.6% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
6/1/19
|
| |
LIBOR + 8.75%
|
| | | | 5,858,561 | | | | | | 3,046,080 | | | | | | 3,018,872 | | | | | | 3,046,080 | | | | | | 3.1% | | |
Mosaic Federal Way Mezz, LLC(2)
|
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 13,889,077 | | | | | | 13,078,097 | | | | | | 13,009,154 | | | | | | 13,078,097 | | | | | | 13.2% | | |
Mosaic Park DTLA, LLC(2)
|
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 7,430,371 | | | | | | 5,627,973 | | | | | | 5,558,787 | | | | | | 5,627,973 | | | | | | 5.7% | | |
Mosaic River Rock, LLC(2)
|
| | Sacramento, CA | | |
2/28/18
|
| |
3/1/19
|
| |
11.00%
|
| | | | 4,272,463 | | | | | | 4,124,933 | | | | | | 4,107,098 | | | | | | 4,124,933 | | | | | | 4.1% | | |
Mosaic Turk & Leavenworth,
LLC(2) |
| |
San Francisco, CA
|
| |
8/6/18
|
| |
2/6/19(7)
|
| |
LIBOR + 8.25%
|
| | | | 2,857,835 | | | | | | 2,747,366 | | | | | | 2,735,819 | | | | | | 2,747,366 | | | | | | 2.8% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 34,308,307 | | | | | | 28,624,449 | | | | | | 28,429,730 | | | | | | 28,624,449 | | | | | | 28.9% | | |
Total
|
| | | | | | | | | | | | | | | $ | 129,841,899 | | | | | $ | 75,751,302 | | | | | $ | 74,147,679 | | | | | $ | 75,864,511 | | | | | | 6.2% | | |
Total investments held by
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 94,896,838 | | | | | $ | 96,375,678 | | | | | | 97.0% | | |
Other net assets of
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 4,968,556 | | | | | $ | 4,859,658 | | | | | | 4.9% | | |
Total investments in
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
99,865,394
|
| | | |
$
|
101,235,336
|
| | | | | | | |
|
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 10,337,706 | | |
| Fund Expenses | | | | | | | |
|
Professional fees
|
| | | | 159,942 | | |
|
Administration expense
|
| | | | 94,445 | | |
|
Organizational expenses
|
| | | | 15,573 | | |
|
Management fees
|
| | | | 2,063 | | |
|
Total Fund Expenses
|
| | | | 272,023 | | |
|
Net Investment Income
|
| | | | 10,065,683 | | |
|
Realized Loss from Real Estate Joint Ventures
|
| | | | (1,088,989) | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 1,289,243 | | |
|
Net Income
|
| | | $ | 10,265,937 | | |
| | |
Manager and
Special Member |
| |
Class A/CX
Members |
| |
Class M
Members |
| |
Class QC
Members |
| |
Class Z
Members |
| |
Total Members’
Equity |
| ||||||||||||||||||
Members’ Equity, beginning of year
|
| | | $ | — | | | | | $ | 57,853,896 | | | | | $ | 79,434 | | | | | $ | 784,756 | | | | | $ | 2,285,062 | | | | | $ | 61,003,148 | | |
Net income
|
| | |
|
—
|
| | | | | 9,854,852 | | | | | | 7,700 | | | | | | 94,794 | | | | | | 308,591 | | | | | | 10,265,937 | | |
Incentive allocation
|
| | | | 2,487,411 | | | | | | (2,463,713) | | | | |
|
—
|
| | | | | (23,698) | | | | |
|
—
|
| | | |
|
—
|
| |
Distributions
|
| | | | (2,338,267) | | | | | | (6,877,623) | | | | | | (8,915) | | | | | | (64,928) | | | | | | (282,276) | | | | | | (9,572,009) | | |
Contributions
|
| | |
|
—
|
| | | | | 37,707,898 | | | | | | 3,603 | | | | | | 8,359 | | | | | | 394,430 | | | | | | 38,114,290 | | |
Redemptions
|
| | |
|
—
|
| | | | | (875,093) | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | (875,093) | | |
Members’ Equity, end of year
|
| | | $ | 149,144 | | | | | $ | 95,200,217 | | | | | $ | 81,822 | | | | | $ | 799,283 | | | | | $ | 2,705,807 | | | | | $ | 98,936,273 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 10,265,937 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (10,337,706) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (1,289,243) | | |
|
Realized loss from real estate joint ventures
|
| | | | 1,088,989 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (53,303,613) | | |
|
Distributions from investments in real estate joint ventures
|
| | | | 25,931,470 | | |
|
Amortization of organizational costs
|
| | | | 15,573 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to/from related parties
|
| | | | 2,932,944 | | |
|
Distributions receivable
|
| | | | (110,598) | | |
|
Accounts payable
|
| | | | 30,035 | | |
|
Management fee payable
|
| | | | 409 | | |
|
Net cash used in operating activities
|
| | | | (24,775,803) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (10,754,897) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 38,558,790 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (438,999) | | |
|
Net cash provided by financing activities
|
| | | | 27,364,894 | | |
|
Net increase in cash during the year
|
| | | | 2,589,091 | | |
|
Cash – beginning of year
|
| | | | 2,156,844 | | |
|
Cash – end of year
|
| | |
$
|
4,745,935
|
| |
|
Investment type
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
(Weighted Average) |
|
| | | | | | | | | |
8.00 – 16.00%
|
|
|
Investments in Loans
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
(11.99%)
|
|
| | | | | | | | | |
8.00 – 15.00%
|
|
|
Investments in Preferred Equity
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
(9.63%)
|
|
|
Balance at January 1, 2018
|
| | | $ | 63,325,233 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 53,303,613 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (25,931,470) | | |
|
Net investment income from real estate joint ventures
|
| | | | 10,337,706 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 1,289,243 | | |
|
Realized loss from real estate joint ventures
|
| | | | (1,088,989) | | |
|
Balance at December 31, 2018
|
| | | $ | 101,235,336 | | |
|
Change in unrealized appreciation for investments held at December 31, 2018
|
| | | $ | 856,177 | | |
|
Interest income
|
| | | $ | 8,310,206 | | |
|
Accrued preferred returns
|
| | | | 930,117 | | |
|
Other income
|
| | | | 1,563,235 | | |
|
Professional fees
|
| | | | (386,707) | | |
|
Administration expense
|
| | | | (38,904) | | |
|
Interest expense
|
| | | | (22,903) | | |
|
Organizational expenses
|
| | | | (17,338) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 10,337,706 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 12,393,998 | | | | | | 13 | | |
Northeast
|
| | | | 3,036,719 | | | | | | 3 | | |
Pacific
|
| | | | 62,077,666 | | | | | | 64 | | |
Southeast
|
| | | | 18,867,295 | | | | | | 20 | | |
Total
|
| | | $ | 96,375,678 | | | | | | 100 | | |
Members’ Equity per Unit
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Members’ Equity per Unit, beginning of year
|
| | | | 1006.55 | | | | | | 979.73 | | | | | | 1008.75 | | | | | | 1010.72 | | |
Net investment income before management fees and incentive
|
| | | | 120.43 | | | | | | 116.22 | | | | | | 120.62 | | | | | | 121.31 | | |
Net gain from real estate joint ventures
|
| | | | 0.44 | | | | | | 0.30 | | | | | | 0.45 | | | | | | 0.45 | | |
Management fees
|
| | |
|
—
|
| | | | | (24.65) | | | | |
|
—
|
| | | |
|
—
|
| |
Incentive
|
| | | | (30.22) | | | | |
|
—
|
| | | | | (30.27) | | | | |
|
—
|
| |
Distributions
|
| | | | (82.85) | | | | | | (106.57) | | | | | | (82.96) | | | | | | (111.72) | | |
Members’ Equity per Unit, end of year
|
| | | | 1014.35 | | | | | | 965.03 | | | | | | 1016.59 | | | | | | 1020.76 | | |
Total Return(1)
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Before incentive and management fees
|
| | | | 12.61% | | | | | | 12.61% | | | | | | 12.61% | | | | | | 12.61% | | |
After incentive and management fees
|
| | | | 9.33% | | | | | | 9.83% | | | | | | 9.33% | | | | | | 12.61% | | |
Ratios(2)
|
| |
Class A/CX
|
| |
Class M
|
| |
Class QC
|
| |
Class Z
|
| ||||||||||||
Fund expenses, before incentive and management fees
|
| | | | 0.32% | | | | | | 0.32% | | | | | | 0.32% | | | | | | 0.32% | | |
Incentive
|
| | | | 3.05% | | | | | | 0.00% | | | | | | 2.99% | | | | | | 0.00% | | |
Management fees
|
| | | | 0.00% | | | | | | 2.52% | | | | | | 0.00% | | | | | | 0.00% | | |
Total Fund expenses
|
| | | | 3.37% | | | | | | 2.84% | | | | | | 3.31% | | | | | | 0.32% | | |
Fund’s pro rata share of expenses of real estate joint ventures (note 4)
|
| | | | 0.55% | | | | | | 0.55% | | | | | | 0.55% | | | | | | 0.55% | | |
Total Fund and real estate joint ventures expenses
|
| | | | 3.92% | | | | | | 3.39% | | | | | | 3.86% | | | | | | 0.87% | | |
Net investment income, before incentive and management fees
|
| | | | 11.96% | | | | | | 11.74% | | | | | | 11.74% | | | | | | 11.78% | | |
Net investment income, after incentive and management fees
|
| | | | 8.91% | | | | | | 9.22% | | | | | | 8.75% | | | | | | 11.78% | | |
| | | | | F-148 | | | |
| | | | | F-149 | | | |
| | | | | F-152 | | | |
| | | | | F-153 | | | |
| | | | | F-154 | | | |
| | | | | F-155 | | |
| | | | | F-166 | | | |
| | | | | F-167 | | | |
| | | | | F-168 | | | |
| | | | | F-171 | | | |
| | | | | F-172 | | | |
| | | | | F-173 | | | |
| | | | | F-174 | | |
| | | | | F-184 | | | |
| | | | | F-185 | | | |
| | | | | F-186 | | | |
| | | | | F-189 | | | |
| | | | | F-190 | | | |
| | | | | F-191 | | | |
| | | | | F-192 | | |
| | | | | F-202 | | | |
| | | | | F-203 | | | |
| | | | | F-204 | | | |
| | | | | F-206 | | | |
| | | | | F-207 | | | |
| | | | | F-208 | | | |
| | | | | F-209 | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $18,946,692)
|
| | | $ | 18,826,840 | | |
|
Cash
|
| | | | 149,940 | | |
|
Organizational costs
|
| | | | 2,173 | | |
|
Total Assets
|
| | | | 18,978,953 | | |
| Liabilities and Partners’ Capital | | | | | | | |
|
Distributions payable
|
| | | | 443,844 | | |
|
Accounts payable
|
| | | | 41,885 | | |
|
Total Liabilities
|
| | | | 485,729 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Partners’ Capital
|
| | | | 18,493,224 | | |
|
Total Liabilities and Partners’ Capital
|
| | | $ | 18,978,953 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
MREC International Incentive Split, LP(1)
|
| | | $ | 18,946,692 | | | | | $ | 18,826,840 | | | | | | 101.8% | | |
Total investments in real estate joint ventures
|
| | | $ | 18,946,692 | | | | | $ | 18,826,840 | | | | | | 101.8% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III, LLC(2)
|
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | $ | 275,067 | | | | | $ | 275,067 | | | | | | 1.5% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(2)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 353,776 | | | | | | 353,874 | | | | | | 1.9% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartments, LLC(2)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 195,609 | | | | | | 196,094 | | | | | | 1.1% | | |
Mosaic Hawk Ridge Investor, LLC(2)
|
| | Winston Salem, NC | | |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 109,301 | | | | | | 109,591 | | | | | | 0.6% | | |
Mosaic 1800 Ashley,
LLC(2) |
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 134,359 | | | | | | 134,782 | | | | | | 0.7% | | |
Mosaic VL Investor,
LLC(2) |
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 880,333 | | | | | | 887,842 | | | | | | 4.8% | | |
MREC Sunbelt Porfolio Sub-Pool 1, LLC(2)
|
| | Mission, TX | | |
11/10/20
|
| |
N/A(4)
|
| |
12.00%
|
| | | | 1,495,713 | | | | | | 1,513,053 | | | | | | 8.2% | | |
| | | Corpus Christi, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Southaven, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(2)
|
| |
Pope Valley, CA
|
| |
12/13/18
|
| |
N/A(4)
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 967,905 | | | | | | 968,893 | | | | | | 5.2% | | |
Total
|
| | | | | | | | | | | | | | | $ | 4,412,063 | | | | | $ | 4,439,196 | | | | | | 24.0% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||||||||
Condominium Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | $ | 38,482 | | | | | $ | 38,482 | | | | | $ | 38,482 | | | | | $ | 38,482 | | | | | | 0.2% | | |
Mosaic Sovereign Town
Center, LLC(2) |
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR plus 8.20% or 9.20%
|
| | | | 1,891,842 | | | | | | 184,645 | | | | | | 181,073 | | | | | | 184,645 | | | | | | 1.0% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR + 6.75% or 9.15%
|
| | | | 1,830,017 | | | | | | 1,720,295 | | | | | | 1,723,322 | | | | | | 1,720,295 | | | | | | 9.3% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 3,760,341 | | | | | | 1,943,422 | | | | | | 1,942,877 | | | | | | 1,943,422 | | | | | | 10.5% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| |
Sacramento, CA
|
| |
7/24/18
|
| |
10/23/21
|
| |
Greater of LIBOR + 9.89% or 10.89%(5)
|
| | | | 611,654 | | | | | | 608,655 | | | | | | 608,655 | | | | | | 608,655 | | | | | | 3.3% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 593,519 | | | | | | 592,242 | | | | | | 584,647 | | | | | | 592,242 | | | | | | 3.2% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 356,111 | | | | | | 355,634 | | | | | | 355,634 | | | | | | 355,634 | | | | | | 1.9% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR + 9.75% or 11.50%(5)
|
| | | | 839,665 | | | | | | 553,414 | | | | | | 552,588 | | | | | | 553,414 | | | | | | 3.0% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR + 8.25% or 9.25%
|
| | | | 778,170 | | | | | | 774,807 | | | | | | 772,200 | | | | | | 774,807 | | | | | | 4.2% | | |
Mosaic Park City Resort, LLC(2)
|
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR + 7.56% or 9.99%
|
| | | | 2,528,810 | | | | | | 1,725,481 | | | | | | 1,719,214 | | | | | | 1,725,481 | | | | | | 9.3% | | |
Mosaic Portland Hotel,
LLC(2) |
| |
Portland, OR
|
| |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR + 8.50% or 11.00%
|
| | | | 15,167,711 | | | | | | 2,044,320 | | | | | | 1,992,646 | | | | | | 2,044,320 | | | | | | 11.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 20,875,640 | | | | | | 6,654,553 | | | | | | 6,585,584 | | | | | | 6,654,553 | | | | | | 36.0% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR + 4.75% or 6.40%
|
| | | | 395,679 | | | | | | 394,278 | | | | | | 392,817 | | | | | | 394,278 | | | | | | 2.1% | | |
Mosaic Metro Air Park,
LLC(2) |
| |
Sacramento, CA
|
| |
2/28/18
|
| |
12/31/21
|
| |
11.00%(3)
|
| | | | 567,427 | | | | | | 412,171 | | | | | | 412,171 | | | | | | 412,171 | | | | | | 2.2% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR + 7.75% or 9.60%
|
| | | | 278,624 | | | | | | 265,779 | | | | | | 265,778 | | | | | | 265,779 | | | | | | 1.4% | | |
Mosaic LV MF,
LLC(2) |
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR + 8.00% or 10.02%
|
| | | | 4,945,993 | | | | | | 2,285,670 | | | | | | 2,278,048 | | | | | | 2,285,670 | | | | | | 12.4% | | |
Mosaic Retreat,
LLC(2) |
| |
Midway City, CA
|
| |
6/10/19
|
| |
1/1/22
|
| |
Greater of LIBOR + 8.50% or 10.95%
|
| | | | 286,233 | | | | | | 280,181 | | | | | | 286,529 | | | | | | 280,181 | | | | | | 1.5% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR + 8.50% or 10.95%
|
| | | | 1,813,531 | | | | | | 1,392,114 | | | | | | 1,388,473 | | | | | | 1,392,114 | | | | | | 7.5% | | |
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
12/1/21
|
| |
Greater of LIBOR + 6.25% or 8.75%
|
| | | | 445,964 | | | | | | 425,791 | | | | | | 425,791 | | | | | | 425,791 | | | | | | 2.3% | | |
Mosaic Merced,
LLC(2) |
| |
Merced, CA
|
| |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR + 7.25% or 9.35%
|
| | | | 2,266,913 | | | | | | 1,734,866 | | | | | | 1,740,420 | | | | | | 1,734,866 | | | | | | 9.4% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 11,000,364 | | | | | | 7,190,850 | | | | | | 7,190,027 | | | | | | 7,190,850 | | | | | | 38.8% | | |
Total
|
| | | | | | | | | | | | | | | $ | 35,636,345 | | | | | $ | 15,788,825 | | | | | $ | 15,718,486 | | | | | $ | 15,788,825 | | | | | | 85.3% | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock, LLC(2)
|
| |
Portland, OR
|
| |
12/29/17
|
| | | $ | 1,586,932 | | | | | $ | 1,137,908 | | | | | | 6.2% | | |
Mosaic Vintage Oaks, LLC(2)
|
| |
Windsor, CA
|
| |
3/31/17
|
| | | | 1,325,958 | | | | | | 990,847 | | | | | | 5.4% | | |
Subtotal
|
| | | | | | | | | | 2,912,890 | | | | | | 2,128,755 | | | | | | 11.5% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 822,097 | | | | | | 836,737 | | | | | | 4.5% | | |
Subtotal
|
| | | | | | | | | | 822,097 | | | | | | 836,737 | | | | | | 4.5% | | |
Total
|
| | | | | | | | | $ | 3,734,987 | | | | | $ | 2,965,492 | | | | | | 16.0% | | |
Total investments held by investments in real estate joint ventures
|
| | | | | | | | | $ | 23,865,536 | | | | | $ | 23,193,513 | | | | | | 125.4% | | |
Other net liabilities of investments in
real estate joint ventures |
| | | | | | | | | $ | (4,918,844) | | | | | $ | (4,366,673) | | | | | | -23.6% | | |
Total investments in real estate joint
ventures |
| | | | | | | | | $ | 18,946,692 | | | | | $ | 18,826,840 | | | | | | | | |
| | |
2021
|
| |
2020
|
| ||||||
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 1,164,957 | | | | | $ | 747,364 | | |
Fund Income | | | | | | | | | | | | | |
Other income
|
| | | | 89,552 | | | | | | 91,254 | | |
Total Fund Income
|
| | | | 1,254,509 | | | | | | 838,618 | | |
Fund Expenses | | | | | | | | | | | | | |
Administration expense
|
| | | | 15,863 | | | | | | 21,881 | | |
Organizational expenses
|
| | | | 19,771 | | | | | | 19,844 | | |
Professional fees
|
| | | | 83,204 | | | | | | 62,748 | | |
Total Fund Expenses
|
| | | | 118,838 | | | | | | 104,473 | | |
Net Investment Income
|
| | | | 1,135,671 | | | | | | 734,145 | | |
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (84,819) | | | | | | (70,075) | | |
Net Realized Loss from Real Estate Joint Ventures
|
| | | | (118,244) | | | | | | — | | |
Net Income
|
| | | $ | 932,608 | | | | | $ | 664,070 | | |
| | |
Class A/CX
Partners |
| |
Class CXR
Partners |
| |
Total Partners’
Capital |
| |||||||||
Partners’ capital, beginning of period
|
| | | $ | 10,193,173 | | | | | $ | 3,194,667 | | | | | $ | 13,387,840 | | |
Net income
|
| | | | 756,931 | | | | | | 175,677 | | | | | | 932,608 | | |
Distributions
|
| | | | (744,005) | | | | | | (169,461) | | | | | | (913,466) | | |
Contributions
|
| | | | 5,086,242 | | | | | | — | | | | | | 5,086,242 | | |
Partners’ capital, end of period
|
| | | $ | 15,292,341 | | | | | $ | 3,200,883 | | | | | $ | 18,493,224 | | |
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 932,608 | | | | | $ | 664,070 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Net investment income from real estate joint ventures
|
| | | | (1,164,957) | | | | | | (747,364) | | |
Change in unrealized depreciation from real estate joint ventures
|
| | | | 84,819 | | | | | | 70,075 | | |
Net realized loss from real estate joint ventures
|
| | | | 118,244 | | | | | | — | | |
Contributions to investments in real estate joint ventures
|
| | | | (14,588,310) | | | | | | (5,440,973) | | |
Distributions from investments in real estate joint ventures
|
| | | | 10,508,815 | | | | | | 3,831,629 | | |
Amortization of organizational costs
|
| | | | 19,771 | | | | | | 19,844 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Due to related parties
|
| | | | (4,037,650) | | | | | | 64,208 | | |
Due from related parties
|
| | | | 3,889,163 | | | | | | (843,362) | | |
Accounts payable
|
| | | | 13,026 | | | | | | (4,029) | | |
Net cash used in operating activities
|
| | | | (4,224,471) | | | | | | (2,385,902) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Distributions, net of change in distributions payable
|
| | | | (815,016) | | | | | | (663,198) | | |
Contributions
|
| | | | 5,086,242 | | | | | | 3,059,792 | | |
Redemptions, net of change in redemptions payable
|
| | | | — | | | | | | (1,125,211) | | |
Net cash provided by financing activities
|
| | | | 4,271,226 | | | | | | 1,271,383 | | |
Net increase (decrease) in cash during the period
|
| | | | 46,755 | | | | | | (1,114,519) | | |
Cash – beginning of period
|
| | | | 103,185 | | | | | | 1,114,523 | | |
Cash – end of period
|
| | | $ | 149,940 | | | | | $ | 4 | | |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 10.40%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
Terminal cap rate
|
| |
18%
7.75%
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$37.82 – 158.77 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 14,588,310 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Contributions to investments in real estate joint ventures
|
| | | $ | 5,440,973 | | |
|
Transfers in(out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 1,134,209 | | |
|
Accrued preferred returns
|
| | | | 381,781 | | |
|
Other income
|
| | | | 463,379 | | |
|
Real estate operations, net
|
| | | | (1,643) | | |
|
Incentive fees
|
| | | | (281,019) | | |
|
Professional fees
|
| | | | (205,020) | | |
|
Interest expense
|
| | | | (305,113) | | |
|
Administration expense
|
| | | | (14,177) | | |
|
Organizational expenses
|
| | | | (7,440) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 1,164,957 | | |
|
Interest income
|
| | | $ | 1,133,904 | | |
|
Accrued preferred returns
|
| | | | 124,751 | | |
|
Other income (loss), net
|
| | | | (61,975) | | |
|
Incentive fees
|
| | | | (190,939) | | |
|
Professional fees
|
| | | | (134,753) | | |
|
Interest expense
|
| | | | (92,364) | | |
|
Administration expense
|
| | | | (25,762) | | |
|
Organizational expenses
|
| | | | (5,498) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 747,364 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 4,011,151 | | | | | | 17 | | |
Northeast
|
| | | | 3,112,409 | | | | | | 13 | | |
Pacific
|
| | | | 11,793,592 | | | | | | 52 | | |
Southeast
|
| | | | 1,945,801 | | | | | | 8 | | |
Southwest
|
| | | | 2,330,560 | | | | | | 10 | | |
Total
|
| | | $ | 23,193,513 | | | | | | 100 | | |
Patners’ Capital per Unit
|
| |
Class A/CX/CXR
|
| |||
Partners’ capital per Unit, beginning of period
|
| | | $ | 990.32 | | |
Net investment income
|
| | | | 66.63 | | |
Net unrealized depreciation and realized loss from real estate joint ventures
|
| | | | (12.18) | | |
Distributions
|
| | | | (52.53) | | |
Partners’ capital per Unit, end of period
|
| | | $ | 992.24 | | |
Total Return(1)
|
| |
Class A/CX/CXR
|
| |||
Before incentive allocation(2)
|
| | | | 7.32% | | |
After incentive allocation
|
| | | | 5.59% | | |
Ratios(3)
|
| |
Class A/CX/CXR
|
| |||
Partnership expenses
|
| | | | 0.14% | | |
Partnership’s pro rata share of incentive allocation from real estate joint ventures
|
| | | | 2.30% | | |
Partnership’s pro rata share of expenses from real estate joint ventures
|
| | | | 5.66% | | |
Total
|
| | | | 8.10% | | |
Net investment income, before incentive allocation
|
| | | | 11.04% | | |
Net investment income, after incentive allocation
|
| | | | 8.74% | | |
Patners’ Capital per Unit
|
| |
Class A/CX/CXR
|
| |||
Partners’ capital per Unit, beginning of period
|
| | | $ | 983.29 | | |
Net investment income
|
| | | | 59.32 | | |
Net unrealized depreciation from real estate joint ventures
|
| | | | (6.54) | | |
Distributions
|
| | | | (43.53) | | |
Partners’ capital per Unit, end of period
|
| | | $ | 992.54 | | |
Total Return(1)
|
| |
Class A/CX/CXR
|
| |||
Before incentive allocation(2)
|
| | | | 7.08% | | |
After incentive allocation
|
| | | | 5.46% | | |
Ratios(3)
|
| |
Class A/CX/CXR
|
| |||
Partnership expenses
|
| | | | 0.09% | | |
Partnership’s pro rata share of incentive allocation from real estate joint ventures
|
| | | | 2.04% | | |
Partnership’s pro rata share of expenses from real estate joint ventures
|
| | | | 2.73% | | |
Total
|
| | | | 4.86% | | |
Net investment income, before incentive allocation
|
| | | | 9.78% | | |
Net investment income, after incentive allocation
|
| | | | 7.74% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $13,702,240)
|
| | | $ | 13,785,451 | | |
|
Cash
|
| | | | 103,185 | | |
|
Due from related parties
|
| | | | 3,889,163 | | |
|
Organizational costs
|
| | | | 21,944 | | |
|
Total Assets
|
| | | | 17,799,743 | | |
| Liabilities and Partners’ Capital | | | | | | | |
|
Due to related parties
|
| | | | 4,037,650 | | |
|
Distributions payable
|
| | | | 345,394 | | |
|
Accounts payable
|
| | | | 28,859 | | |
|
Total Liabilities
|
| | | | 4,411,903 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Partners’ Capital
|
| | | | 13,387,840 | | |
|
Total Liabilities and Partners’ Capital
|
| | | $ | 17,799,743 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
MREC International Incentive Split, LP(1)
|
| | | $ | 13,702,240 | | | | | $ | 13,785,451 | | | | | | 103.0% | | |
Total investments in real estate joint ventures
|
| | | $ | 13,702,240 | | | | | $ | 13,785,451 | | | | | | 103.0% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(2)
|
| | Orange Beach, AL | | |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 141,259 | | | | | | 141,259 | | | | | | 1.1% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III, LLC(2)
|
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 285,386 | | | | | | 285,386 | | | | | | 2.1% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast,
LLC(2) |
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/30
|
| |
12.00%
|
| | | | 279,520 | | | | | | 279,950 | | | | | | 2.1% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartments, LLC(2)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 150,103 | | | | | | 151,099 | | | | | | 1.1% | | |
Mosaic Hawk Ridge Investor, LLC(2)
|
| |
Winston Salem, NC
|
| |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 85,945 | | | | | | 86,455 | | | | | | 0.6% | | |
Mosaic 1800 Ashley,
LLC(2) |
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 105,524 | | | | | | 106,202 | | | | | | 0.8% | | |
Mosaic VL Investor,
LLC(2) |
| | Fort Meyers, FL | | |
2/18/20
|
| |
3/1/25
|
| |
12.00%
|
| | | | 687,372 | | | | | | 694,559 | | | | | | 5.2% | | |
Mosaic Tex Ark Sunbelt, LLC(2)
|
| | Southaven, MS | | |
11/6/20
|
| |
NA(4)
|
| |
12.00%
|
| | | | 244,996 | | | | | | 249,328 | | | | | | 1.9% | | |
MREC Sunbelt Porfolio Sub-Pool 1, LLC(2)
|
| | Mission, TX | | |
11/10/20
|
| |
N/A(4)
|
| |
12.00%
|
| | | | 2,353,498 | | | | | | 2,390,387 | | | | | | 17.9% | | |
| | |
Corpus Christi, TX
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Webster, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
North Little Rock, AR
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Houston, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conway, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beaumont, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Little Rock, AR | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Texas City, TX | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(2)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
NA(3)
|
| |
Greater of LIBOR + 11.00% or 13.00%
|
| | | | 711,736 | | | | | | 715,184 | | | | | | 5.3% | | |
Total
|
| | | | | | | | | | | | | | | $ | 5,045,339 | | | | | $ | 5,099,809 | | | | | | 38.1% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/21
|
| |
9.13%
|
| | | $ | 613 | | | | | $ | 48,733 | | | | | $ | 48,733 | | | | | $ | 48,733 | | | | | | 0.4% | | |
Mosaic Sovereign Town Center, LLC(2)
|
| | Davenport, FL | | |
11/12/20
|
| |
5/1/23
|
| |
Greater of LIBOR plus 8.20% or 9.20%
|
| | | | 1,447,147 | | | | | | — | | | | | | (6,759) | | | | | | — | | | | | | 0.0% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
6/29/21
|
| |
Greater of LIBOR +
6.25% or 8.00%(5) |
| | | | 590,918 | | | | | | 506,836 | | | | | | 506,836 | | | | | | 506,836 | | | | | | 3.8% | | |
Mosaic North Bergen, LLC(2)
|
| |
North Bergen, NJ
|
| |
8/7/19
|
| |
8/7/22
|
| |
Greater of LIBOR +
6.75% or 9.15% |
| | | | 334,653 | | | | | | 893,749 | | | | | | 897,908 | | | | | | 893,749 | | | | | | 6.7% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 2,373,331 | | | | | | 1,449,318 | | | | | | 1,446,718 | | | | | | 1,449,318 | | | | | | 10.9% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| |
Sacramento, CA
|
| |
7/24/18
|
| |
7/23/21
|
| |
Greater of LIBOR +
9.89% or 10.89% |
| | | | 376,258 | | | | | | 251,375 | | | | | | 251,375 | | | | | | 251,375 | | | | | | 1.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
Greater of LIBOR +
11.00% or 13.00% |
| | | | 795,931 | | | | | | 794,836 | | | | | | 763,330 | | | | | | 794,836 | | | | | | 5.9% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/21
|
| |
15.00%
|
| | | | 260,486 | | | | | | 260,069 | | | | | | 260,069 | | | | | | 260,069 | | | | | | 1.9% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
Greater of LIBOR +
9.75% or 11.50% |
| | | | 614,193 | | | | | | 246,706 | | | | | | 244,554 | | | | | | 246,706 | | | | | | 1.8% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
Greater of LIBOR +
8.25% or 9.25% |
| | | | 569,211 | | | | | | 457,581 | | | | | | 453,501 | | | | | | 457,581 | | | | | | 3.4% | | |
Mosaic Ketchum Resort,
LLC(2) |
| | Ketchum, ID | | |
12/6/19
|
| |
12/5/22
|
| |
Greater of LIBOR +
9.00% or 11.25% |
| | | | 1,449,558 | | | | | | — | | | | | | (9,378) | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort,
LLC(2) |
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
Greater of LIBOR +
7.56% or 9.99% |
| | | | 955,117 | | | | | | 517,353 | | | | | | 507,791 | | | | | | 517,353 | | | | | | 3.9% | | |
Mosaic Portland Hotel,
LLC(2) |
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
Greater of LIBOR +
8.50% or 11.00% |
| | | | 11,094,790 | | | | | | 525,513 | | | | | | 471,761 | | | | | | 525,513 | | | | | | 3.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 16,115,544 | | | | | | 3,053,433 | | | | | | 2,943,003 | | | | | | 3,053,433 | | | | | | 22.7% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/31/19(3)
|
| |
13.00%
|
| | | | 885,387 | | | | | | 836,528 | | | | | | 1,050,419 | | | | | | 836,528 | | | | | | 6.2% | | |
Mosaic Parkland, LLC(2)
|
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
Greater of LIBOR +
8.00% or 10.25% |
| | | | 60,298 | | | | | | 30,884 | | | | | | 30,462 | | | | | | 30,884 | | | | | | 0.2% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 945,685 | | | | | | 867,413 | | | | | | 1,080,881 | | | | | | 867,412 | | | | | | 6.4% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
Greater or LIBOR +
7.25% or 8.91% |
| | | | 397,965 | | | | | | 397,315 | | | | | | 397,315 | | | | | | 397,315 | | | | | | 3.0% | | |
Mosaic Gardenhouse, LLC(2)
|
| |
Beverly Hills, CA
|
| |
1/28/20
|
| |
2/1/22
|
| |
Greater of LIBOR +
4.75% or 6.40% |
| | | | 289,429 | | | | | | 303,295 | | | | | | 299,890 | | | | | | 303,295 | | | | | | 2.3% | | |
Mosaic Metro Air Park,
LLC(2) |
| |
Sacramento, CA
|
| |
2/28/18
|
| |
2/29/21
|
| |
11.00%(6)
|
| | | | 415,058 | | | | | | 425,114 | | | | | | 425,114 | | | | | | 425,114 | | | | | | 3.2% | | |
Mosaic DTLA Parking,
LLC(2) |
| |
Los Angeles, CA
|
| |
6/26/19
|
| |
6/26/21
|
| |
Greater of LIBOR +
8.25% or 10.75% (6) |
| | | | 487,206 | | | | | | 444,440 | | | | | | 442,949 | | | | | | 444,440 | | | | | | 3.3% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
Greater of LIBOR +
7.75% or 9.60% |
| | | | 324,402 | | | | | | 113,242 | | | | | | 113,251 | | | | | | 113,242 | | | | | | 0.8% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
Greater of LIBOR +
8.00% or 10.02% |
| | | | 3,617,866 | | | | | | 750,818 | | | | | | 740,730 | | | | | | 750,818 | | | | | | 5.6% | | |
Mosaic Retreat, LLC(2)
|
| |
Midway City, CA
|
| |
6/10/19
|
| |
7/1/21
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 209,372 | | | | | | 191,964 | | | | | | 195,995 | | | | | | 191,964 | | | | | | 1.4% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
Greater of LIBOR +
8.50% or 10.95% |
| | | | 1,326,551 | | | | | | 1,098,036 | | | | | | 1,091,990 | | | | | | 1,098,036 | | | | | | 8.2% | | |
Mosaic West Cheyenne,
LLC(2) |
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
Greater of LIBOR +
7.25% or 9.27% |
| | | | 338,873 | | | | | | 317,128 | | | | | | 316,553 | | | | | | 317,128 | | | | | | 2.4% | | |
1111 Sunset(2)
|
| |
Los Angeles, CA
|
| |
8/29/19
|
| |
9/1/21
|
| |
Greater of LIBOR +
6.25% or 8.75% |
| | | | 326,211 | | | | | | 298,065 | | | | | | 295,877 | | | | | | 298,065 | | | | | | 2.2% | | |
Merced Station(2)
|
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
Greater of LIBOR +
7.25% or 9.35% |
| | | | 1,658,189 | | | | | | 259,718 | | | | | | 251,807 | | | | | | 259,718 | | | | | | 1.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 9,391,124 | | | | | | 4,599,135 | | | | | | 4,571,471 | | | | | | 4,599,135 | | | | | | 34.4% | | |
Total
|
| | | | | | | | | | | | | | | $ | 28,825,682 | | | | | $ | 9,969,298 | | | | | $ | 10,042,073 | | | | | $ | 9,969,298 | | | | | | 74.3% | | |
Investments in Real Estate
|
| |
City, State
|
| |
Acquisition
Date |
| |
Real Estate at
Cost |
| |
Real Estate at
Fair Value |
| |
% of
Members’ Equity |
| |||||||||
Single Family Residence Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(2)
|
| | New York, NY | | |
6/4/15
|
| | | | 243,579 | | | | | | 194,671 | | | | | | 1.5% | | |
Subtotal
|
| | | | | | | | | | 243,579 | | | | | | 194,671 | | | | | | 1.5% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| | | | 969,904 | | | | | | 747,692 | | | | | | 5.6% | | |
Subtotal
|
| | | | | | | | | | 969,904 | | | | | | 747,692 | | | | | | 5.6% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic LA Office, LLC(2)
|
| |
Los Angeles, CA
|
| |
10/16/18
|
| | | | 617,364 | | | | | | 615,335 | | | | | | 4.6% | | |
Subtotal
|
| | | | | | | | | | 617,364 | | | | | | 615,335 | | | | | | 4.6% | | |
Total
|
| | | | | | | | | $ | 1,830,847 | | | | | $ | 1,557,698 | | | | | | 11.6% | | |
Total investments held by investments in
real estate joint ventures |
| | | | | | | | | $ | 16,918,259 | | | | | $ | 16,626,805 | | | | | | 124.2% | | |
Other net liabilities of investments in real estate joint ventures
|
| | | | | | | | | $ | (3,216,019) | | | | | $ | (2,841,354) | | | | | | -21.2% | | |
Total investments in real estate joint ventures
|
| | | | | | | | | $ | 13,702,240 | | | | | $ | 13,785,451 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 1,040,028 | | |
| Fund Income | | | | | | | |
|
Other income
|
| | | | 129,581 | | |
|
Total Fund Income
|
| | | | 1,169,609 | | |
| Fund Expenses | | | | | | | |
|
Administration expense
|
| | | | 27,494 | | |
|
Organizational expenses
|
| | | | 26,506 | | |
|
Professional fees
|
| | | | 95,341 | | |
|
Total Fund Expenses
|
| | | | 149,341 | | |
|
Net Investment Income
|
| | | | 1,020,268 | | |
|
Change in Unrealized Depreciation from Real Estate Joint Ventures
|
| | | | (83,952) | | |
|
Net Income
|
| | | $ | 936,316 | | |
| | |
Class A/CX
Partners |
| |
Class R
Partners |
| |
Total Partners’
Capital |
| |||||||||
Partners’ capital, beginning of year
|
| | | $ | 10,094,681 | | | | | $ | — | | | | | $ | 10,094,681 | | |
Net income
|
| | | | 936,316 | | | | | | — | | | | | | 936,316 | | |
Distributions
|
| | | | (860,439) | | | | | | — | | | | | | (860,439) | | |
Contributions
|
| | | | 3,217,282 | | | | | | — | | | | | | 3,217,282 | | |
Transfers resulting from redemption requests
|
| | | | (3,194,667) | | | | | | 3,194,667 | | | | | | — | | |
Partners’ capital, end of year
|
| | | $ | 10,193,173 | | | | | $ | 3,194,667 | | | | | $ | 13,387,840 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 936,316 | | |
|
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | |
|
Net investment income from real estate joint ventures
|
| | | | (1,040,028) | | |
|
Change in unrealized depreciation from real estate joint ventures
|
| | | | 83,952 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (5,632,894) | | |
|
Distributions from investments in real estate joint ventures
|
| | | | 4,098,549 | | |
|
Amortization of organizational costs
|
| | | | 26,506 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | 46,718 | | |
|
Due from related parties
|
| | | | (905,992) | | |
|
Accounts payable
|
| | | | (6,636) | | |
|
Net cash used in operating activities
|
| | | | (2,393,509) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (709,900) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 3,217,282 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (1,125,211) | | |
|
Net cash provided by financing activities
|
| | | | 1,382,171 | | |
|
Net decrease in cash during the year
|
| | | | (1,011,338) | | |
|
Cash – beginning of year
|
| | | | 1,114,523 | | |
|
Cash – end of year
|
| | |
$
|
103,185
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13% – 11.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.25% – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.25% – 18.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.40% – 11.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
16.00%
|
|
|
Investments in Real Estate
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Single Family Residence
Development |
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$806.12 PSF
|
|
|
Mixed-Use Development
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$93.09 PSF
|
|
|
Land
|
| |
Sales Comparable
|
| |
Price per square foot
|
| |
$39.02 PSF
|
|
|
Contributions to investments in real estate joint ventures
|
| | | $ | 5,632,894 | | |
|
Transfers in (out) of Level 3
|
| | | $ | — | | |
|
Interest income
|
| | | $ | 1,355,244 | | |
|
Accrued preferred returns
|
| | | | 223,679 | | |
|
Other income
|
| | | | 556,237 | | |
|
Incentive fees
|
| | | | (268,912) | | |
|
Professional fees
|
| | | | (206,716) | | |
|
Interest expense
|
| | | | (575,035) | | |
|
Administration expense
|
| | | | (37,118) | | |
|
Organizational expenses
|
| | | | (7,351) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 1,040,028 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 1,982,614 | | | | | | 12 | | |
Northeast
|
| | | | 2,186,456 | | | | | | 13 | | |
Pacific
|
| | | | 7,192,963 | | | | | | 43 | | |
Southeast
|
| | | | 2,100,647 | | | | | | 13 | | |
Southwest
|
| | | | 3,164,125 | | | | | | 19 | | |
Total
|
| | | $ | 16,626,805 | | | | | | 100 | | |
Entity
|
| |
Description
|
| |
Due from
|
| |||
GA
|
| |
Investment related transactions
|
| | | $ | 2,412,508 | | |
UA
|
| |
Investment related transactions
|
| | | | 910,299 | | |
NU
|
| |
Investment related transactions
|
| | | | 446,568 | | |
Manager
|
| | Professional fees | | | | | 119,788 | | |
| | | | | | | $ | 3,889,163 | | |
Entity
|
| |
Description
|
| |
Due to
|
| |||
U2
|
| |
Investment related transactions
|
| | | $ | 57,879 | | |
Mosaic Real Estate Credit TE, LLC
|
| |
Investment related transactions
|
| | | | 748,006 | | |
Mosaic Real Estate Credit, LLC
|
| |
Investment related transactions
|
| | | | 3,231,765 | | |
| | | | | | | $ | 4,037,650 | | |
Patners’ Capital per Unit
|
| |
Class A/CX/R
|
| |||
Partners’ capital per Unit, beginning of year
|
| | | $ | 983.29 | | |
Net investment income
|
| | | | 80.74 | | |
Net unrealized depreciation from real estate joint ventures
|
| | | | (7.73) | | |
Distributions
|
| | | | (65.98) | | |
Partners’ capital per Unit, end of year
|
| | | $ | 990.32 | | |
Total Return(1)
|
| |
Class A/CX/R
|
| |||
Before incentive allocation(2)
|
| | | | 9.90% | | |
After incentive allocation
|
| | | | 7.61% | | |
Ratios(3)
|
| |
Class A/CX/R
|
| |||
Partnership expenses
|
| | | | 0.16% | | |
Partnerships pro rata share of incentive allocation from real estate joint ventures
|
| | | | 2.12% | | |
Partnerships pro rata share of expenses from real estate joint ventures
|
| | | | 8.62% | | |
Total
|
| | | | 10.90% | | |
Net investment income, before incentive allocation
|
| | | | 10.15% | | |
Net investment income, after incentive allocation
|
| | | | 8.03% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $11,127,866)
|
| | | $ | 11,295,029 | | |
|
Cash
|
| | | | 1,114,523 | | |
|
Due from related parties
|
| | | | 2,983,172 | | |
|
Organizational costs
|
| | | | 48,450 | | |
|
Total Assets
|
| | | | 15,441,174 | | |
| Liabilities and Partners’ Capital | | | | | | | |
|
Due to related parties
|
| | | | 3,990,932 | | |
|
Redemptions payable
|
| | | | 1,125,211 | | |
|
Distributions payable
|
| | | | 194,855 | | |
|
Accounts payable
|
| | | | 35,495 | | |
|
Total Liabilities
|
| | | | 5,346,493 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Partners’ Capital
|
| | | | 10,094,681 | | |
|
Total Liabilities and Partners’ Capital
|
| | | $ | 15,441,174 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
MREC International Incentive Split, LP(1)
|
| | | $ | 11,127,866 | | | | | $ | 11,295,029 | | | | | | 111.9% | | |
Total investments in real estate joint ventures
|
| | | $ | 11,127,866 | | | | | $ | 11,295,029 | | | | | | 111.9% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition
Date |
| |
Redemption
Date |
| |
Preferred Return Rate
|
| |
Cost
|
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||
Single Family Residence Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY,
LLC(2) |
| | New York, NY | | |
6/4/15
|
| |
6/30/17(3)
|
| |
12.50 – 15.00%
|
| | | $ | 277,598 | | | | | $ | 192,733 | | | | | | 1.9% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II,
LLC(2) |
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
12.00%
|
| | | | 384,497 | | | | | | 384,497 | | | | | | 3.8% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(2) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
12.00%
|
| | | | 250,508 | | | | | | 250,508 | | | | | | 2.5% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(2)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
12.00%
|
| | | | 244,955 | | | | | | 245,741 | | | | | | 2.4% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Marbach Apartment, LLC(2)
|
| | San Antonio, TX | | |
3/20/19
|
| |
4/1/34
|
| |
12.00%
|
| | | | 123,162 | | | | | | 124,746 | | | | | | 1.2% | | |
Mosaic Hawk Ridge, LLC(2)
|
| |
Winston Salem, NC
|
| |
5/9/19
|
| |
6/1/24
|
| |
12.00%
|
| | | | 73,973 | | | | | | 74,748 | | | | | | 0.7% | | |
Mosaic 1800 Ashley, LLC(2)
|
| | Charleston, SC | | |
6/20/19
|
| |
7/1/24
|
| |
12.00%
|
| | | | 90,971 | | | | | | 91,966 | | | | | | 0.9% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(2)
|
| | Pope Valley, CA | | |
12/13/18
|
| |
N/A(4)
|
| |
LIBOR(13) + 11.00%
|
| | | | 631,742 | | | | | | 638,197 | | | | | | 6.3% | | |
Total
|
| | | | | | | | | | | | | | | $ | 2,077,406 | | | | | $ | 2,003,136 | | | | | | 19.7% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition
Date |
| |
Maturity
Date |
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of
Partners’ Capital |
| |||||||||||||||
Condominium Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Timbers Kauai,
LLC(2) |
| | Kauai, HI | | |
11/28/16
|
| |
11/28/20
|
| |
9.13%
|
| | | $ | 304,619 | | | | | $ | 246,078 | | | | | $ | 246,078 | | | | | $ | 246,078 | | | | | | 2.4% | | |
Mosaic Timbers Kiawah,
LLC(2) |
| | Kiawah Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 275,367 | | | | | | 261,672 | | | | | | 261,300 | | | | | | 261,672 | | | | | | 2.6% | | |
Mosaic Riverwalk, LLC(2)
|
| | Tampa, FL | | |
12/21/18
|
| |
12/29/20
|
| |
LIBOR + 8.75%
|
| | | | 539,092 | | | | | | 279,070 | | | | | | 279,070 | | | | | | 279,070 | | | | | | 2.8% | | |
Mosaic North Bergen,
LLC(2) |
| | North Bergen, NJ | | |
8/7/19
|
| |
8/7/22
|
| |
LIBOR(10) + 8.00%
|
| | | | 1,221,209 | | | | | | 220,056 | | | | | | 214,756 | | | | | | 220,056 | | | | | | 2.2% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 2,340,287 | | | | | | 1,006,876 | | | | | | 1,001,204 | | | | | | 1,006,876 | | | | | | 10.0% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR + 9.89%
|
| | | | 446,975 | | | | | | 93,890 | | | | | | 92,669 | | | | | | 93,890 | | | | | | 0.9% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR + 11.00%
|
| | | | 792,136 | | | | | | 495,203 | | | | | | 435,185 | | | | | | 495,203 | | | | | | 4.9% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
15.00%
|
| | | | 237,641 | | | | | | 218,244 | | | | | | 218,244 | | | | | | 218,244 | | | | | | 2.2% | | |
Mosaic Spring Street Hotel, LLC(2)
|
| | Los Angeles, CA | | |
11/16/18
|
| |
11/15/21
|
| |
LIBOR + 9.75%
|
| | | | 560,326 | | | | | | 30,146 | | | | | | 26,309 | | | | | | 30,146 | | | | | | 0.3% | | |
Mosaic Davis Hotel, LLC(2)
|
| | Davis, CA | | |
5/20/19
|
| |
5/20/22
|
| |
LIBOR(5) + 8.25%
|
| | | | 75,693 | | | | | | 70,334 | | | | | | 64,061 | | | | | | 70,334 | | | | | | 0.7% | | |
Mosaic Ketchum Resort,
LLC(2) |
| | Ketchum, ID | | |
12/5/19
|
| |
12/5/22
|
| |
LIBOR(6) + 9.00%
|
| | | | 1,322,426 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic Park City Resort, LLC(2)
|
| | Park City, UT | | |
6/6/19
|
| |
6/6/22
|
| |
LIBOR(7) + 7.56%
|
| | | | 3,630,621 | | | | | | 511,945 | | | | | | 497,201 | | | | | | 511,945 | | | | | | 5.1% | | |
Mosaic Portland Hotel,
LLC(2) |
| | Portland, OR | | |
6/28/19
|
| |
6/29/23
|
| |
LIBOR(8) + 8.50%
|
| | | | 10,121,732 | | | | | | 360,337 | | | | | | 291,995 | | | | | | 360,337 | | | | | | 3.6% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 17,187,550 | | | | | | 1,780,099 | | | | | | 1,625,664 | | | | | | 1,780,099 | | | | | | 17.7% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| |
3/31/2019(3)
|
| |
13.00%
|
| | | | 766,765 | | | | | | 671,115 | | | | | | 766,766 | | | | | | 671,115 | | | | | | 6.6% | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/30/2019(3)
|
| |
13.00%
|
| | | | 807,735 | | | | | | 768,770 | | | | | | 792,500 | | | | | | 768,770 | | | | | | 7.6% | | |
Mosaic Righetti Ranch,
LLC(2) |
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
1/30/20
|
| |
10.00%
|
| | | | 539,092 | | | | | | 272,183 | | | | | | 272,183 | | | | | | 272,183 | | | | | | 2.7% | | |
Mosaic Parkland, LLC(2)
|
| | Ventura, CA | | |
1/30/19
|
| |
1/31/21
|
| |
LIBOR(6) + 8.00%
|
| | | | 330,056 | | | | | | 315,707 | | | | | | 310,862 | | | | | | 315,707 | | | | | | 3.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 2,443,648 | | | | | | 2,027,775 | | | | | | 2,142,311 | | | | | | 2,027,775 | | | | | | 20.0% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
7/30/21
|
| |
LIBOR + 8.75%
|
| | | | 477,381 | | | | | | 474,999 | | | | | | 474,999 | | | | | | 474,999 | | | | | | 4.7% | | |
Mosaic Federal Way Mezz, LLC(2)
|
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 466,559 | | | | | | 457,867 | | | | | | 457,867 | | | | | | 457,867 | | | | | | 4.5% | | |
Mosaic Park DTLA, LLC(2)
|
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 572,098 | | | | | | 466,064 | | | | | | 462,621 | | | | | | 466,064 | | | | | | 4.6% | | |
Mosaic River Rock, LLC(2)
|
| | Sacramento, CA | | |
2/28/18
|
| |
2/29/20
|
| |
11.00%
|
| | | | 378,656 | | | | | | 367,826 | | | | | | 367,826 | | | | | | 367,826 | | | | | | 3.6% | | |
Mosaic DTLA Parking,
LLC(2) |
| | Los Angeles, CA | | |
6/26/19
|
| |
6/26/21
|
| |
LIBOR(8) + 8.25%
|
| | | | 444,476 | | | | | | 391,635 | | | | | | 387,497 | | | | | | 391,635 | | | | | | 3.9% | | |
Mosaic Duo, LLC(2)
|
| | Phoenix, AZ | | |
6/6/19
|
| |
7/1/22
|
| |
LIBOR(11) + 7.75%
|
| | | | 1,479,753 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Mosaic LV MF, LLC(2)
|
| | Las Vegas, NV | | |
8/30/19
|
| |
8/30/22
|
| |
LIBOR + 8.00%
|
| | | | 443,673 | | | | | | 434,991 | | | | | | 420,324 | | | | | | 434,991 | | | | | | 4.3% | | |
Mosaic Retreat, LLC(2)
|
| | Midway City, CA | | |
6/10/19
|
| |
7/1/21
|
| |
LIBOR(12) + 8.50%
|
| | | | 473,961 | | | | | | 92,290 | | | | | | 88,950 | | | | | | 92,290 | | | | | | 0.9% | | |
Mosaic Silo Ridge, LLC(2)
|
| | Amenia, NY | | |
5/20/19
|
| |
5/1/22
|
| |
LIBOR(12) + 8.50%
|
| | | | 1,210,207 | | | | | | 1,090,531 | | | | | | 1,080,926 | | | | | | 1,090,531 | | | | | | 10.8% | | |
Mosaic West Cheyenne,
LLC(2) |
| | Las Vegas, NV | | |
9/6/19
|
| |
9/6/22
|
| |
LIBOR + 7.25%
|
| | | | 772,882 | | | | | | 151,120 | | | | | | 144,203 | | | | | | 151,120 | | | | | | 1.5% | | |
Mosaic 1111 Sunset, LLC(2)
|
| | Los Angeles, CA | | |
8/29/19
|
| |
9/1/21
|
| |
LIBOR(8) + 6.25%
|
| | | | 511,891 | | | | | | 499,480 | | | | | | 494,528 | | | | | | 499,480 | | | | | | 4.9% | | |
Mosaic Merced Station,
LLC(2) |
| | Merced, CA | | |
11/26/19
|
| |
12/1/21
|
| |
LIBOR(9) + 7.25%
|
| | | | 102,491 | | | | | | 87,051 | | | | | | 72,600 | | | | | | 87,051 | | | | | | 0.9% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 7,334,028 | | | | | | 4,513,854 | | | | | | 4,452,341 | | | | | | 4,513,854 | | | | | | 44.6% | | |
Total
|
| | | | | | | | | | | | | | | $ | 29,305,513 | | | | | $ | 9,328,604 | | | | | $ | 9,221,520 | | | | | $ | 9,328,604 | | | | | | 92.3% | | |
Total investments held by investments in real estate joint ventures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 11,298,926 | | | | | $ | 11,331,740 | | | | | | 112.0% | | |
Other net assets of investments in real estate joint ventures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (171,060) | | | | | $ | (36,711) | | | | | | -0.4% | | |
Total investments in investments in
real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 11,127,866 | | | | | $ | 11,295,029 | | | | | | | | |
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 764,381 | | |
| Fund Expenses | | | | | | | |
|
Administration expense
|
| | | | 19,925 | | |
|
Organizational expenses
|
| | | | 27,610 | | |
|
Professional fees
|
| | | | (103) | | |
|
Total Fund Expenses
|
| | | | 47,432 | | |
|
Net Investment Income
|
| | | | 716,949 | | |
|
Realized Gain from Real Estate Joint Ventures
|
| | | | 50 | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 51,146 | | |
|
Net Income
|
| | | $ | 768,145 | | |
| | |
Class A-I
Members |
| |
Class A/CX
Members |
| |
Total Partners’
Capital |
| |||||||||
Partners’ capital, beginning of year
|
| | | $ | — | | | | | $ | 8,178,834 | | | | | $ | 8,178,834 | | |
Net income
|
| | | | 932 | | | | | | 767,213 | | | | | | 768,145 | | |
Distributions
|
| | | | (2,779) | | | | | | (717,598) | | | | | | (720,377) | | |
Contributions
|
| | | | 176,847 | | | | | | 2,917,670 | | | | | | 3,094,517 | | |
Redemptions
|
| | | | — | | | | | | (1,226,438) | | | | | | (1,226,438) | | |
Partners’ capital, end of year
|
| | | $ | 175,000 | | | | | $ | 9,919,681 | | | | | $ | 10,094,681 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 768,145 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Net Investment income from real estate joint ventures
|
| | | | (764,381) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (51,146) | | |
|
Realized gain from real estate joint ventures
|
| | | | (50) | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (4,850,529) | | |
|
Distributions from investments in real estate joint ventures
|
| | | | 3,768,166 | | |
|
Amortization of organizational costs
|
| | | | 26,434 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to related parties
|
| | | | 1,347,996 | | |
|
Due from related parties
|
| | | | (447,232) | | |
|
Accounts payable
|
| | | | (72,020) | | |
|
Net cash used in operating activities
|
| | | | (274,617) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (738,056) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 3,094,517 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (1,101,072) | | |
|
Net cash provided by financing activities
|
| | | | 1,255,389 | | |
|
Net increase in cash during the year
|
| | | | 980,772 | | |
|
Cash – beginning of year
|
| | | | 133,751 | | |
|
Cash – end of year
|
| | |
$
|
1,114,523
|
| |
|
Investments in Loans
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Condominium Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.13 – 10.50%
|
|
|
Hotel Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
9.99 – 15.00%
|
|
|
Land Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
10.00 – 10.25%
|
|
|
Land Development
|
| |
Market Comparable Approach
|
| |
Price per square foot
|
| |
$38 – 161
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
8.75 – 16.00%
|
|
|
Investments in Preferred Equity
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
|
|
|
Operating Apartment Properties
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
12.00%
|
|
|
Mixed-Use Development
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
13.00%
|
|
|
Balance at January 1, 2019
|
| | | $ | 9,397,089 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 4,850,529 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (3,768,166) | | |
|
Net investment income from real estate joint ventures
|
| | | | 764,381 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 51,146 | | |
|
Realized gain from real estate joint ventures
|
| | | | 50 | | |
|
Balance at December 31, 2019
|
| | | $ | 11,295,029 | | |
|
Interest income
|
| | | $ | 1,014,276 | | |
|
Accrued preferred returns
|
| | | | 129,221 | | |
|
Loan fee income
|
| | | | 13,473 | | |
|
Incentive fees
|
| | | | (234,028) | | |
|
Professional fees
|
| | | | (105,228) | | |
|
Interest expense
|
| | | | (25,279) | | |
|
Administration expense
|
| | | | (20,913) | | |
|
Organizational expenses
|
| | | | (7,141) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 764,381 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 1,573,055 | | | | | | 14 | | |
Northeast
|
| | | | 1,503,320 | | | | | | 13 | | |
Pacific
|
| | | | 6,324,173 | | | | | | 56 | | |
Southeast
|
| | | | 1,588,202 | | | | | | 14 | | |
Southwest
|
| | | | 342,990 | | | | | | 3 | | |
Total
|
| | | $ | 11,331,740 | | | | | | 100 | | |
Patners’ Capital per Unit
|
| |
Class A-I(1)
|
| |
Class A/CX
|
| ||||||
Partners’ capital per Unit, beginning of period
|
| | | | 993.78 | | | | | | 976.41 | | |
Net investment income
|
| | | | 13.34 | | | | | | 73.56 | | |
Net gain (loss) from real estate joint ventures
|
| | | | (8.05) | | | | | | 9.13 | | |
Distributions
|
| | | | (15.78) | | | | | | (75.81) | | |
Partners’ capital per Unit, end of period
|
| | | | 983.29 | | | | | | 983.29 | | |
Total Return(2)
|
| |
Class A-I
|
| |
Class A/CX
|
| ||||||
Before incentive allocation(3)
|
| | | | 0.55% | | | | | | 11.57% | | |
After incentive allocation
|
| | | | 0.53% | | | | | | 8.73% | | |
Ratios(4)
|
| |
Class A-I
|
| |
Class A/CX
|
| ||||||
Partnership expenses
|
| | | | 0.52% | | | | | | 0.52% | | |
Partnerships pro rata share of incentive allocation from real estate joint ventures
|
| | | | 0.02% | | | | | | 2.55% | | |
Partnerships pro rata share of expenses from real estate joint ventures
|
| | | | 1.45% | | | | | | 1.45% | | |
Total
|
| | | | 1.98% | | | | | | 4.50% | | |
Net investment income, after incentive allocation
|
| | | | 1.34% | | | | | | 7.78% | | |
| Assets | | | | | | | |
|
Investments in real estate joint ventures, at fair value (cost $9,281,072)
|
| | | $ | 9,397,089 | | |
|
Cash
|
| | | | 133,751 | | |
|
Organizational costs
|
| | | | 74,884 | | |
|
Total Assets
|
| | | | 9,605,724 | | |
| Liabilities and Partners’ Capital | | | | | | | |
|
Redemptions payable
|
| | | | 999,845 | | |
|
Distributions payable
|
| | | | 212,534 | | |
|
Accounts payable
|
| | | | 107,515 | | |
|
Due to related parties, net
|
| | | | 106,996 | | |
|
Total Liabilities
|
| | | | 1,426,890 | | |
| Commitments and Contingencies (Note 9) | | | | | | | |
|
Partners’ Capital
|
| | | | 8,178,834 | | |
|
Total Liabilities and Partners’ Capital
|
| | | $ | 9,605,724 | | |
Investment Description
|
| |
Cost
|
| |
Fair Value
|
| |
% of Partners’
Capital |
| |||||||||
MREC International Incentive Split, LP(1)
|
| | | $ | 9,281,072 | | | | | $ | 9,397,089 | | | | | | 114.9% | | |
Total investments in real estate joint ventures
|
| | | $ | 9,281,072 | | | | | $ | 9,397,089 | | | | | | 114.9% | | |
Investments in Preferred Equity
|
| |
City, State
|
| |
Acquisition Date
|
| |
Redemption Date
|
| |
Preferred Return
Rate |
| |
Cost
|
| |
Fair Value
|
| |
% of Partners’
Capital |
| |||||||||
Single Family Residence Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic – 58 W 75th Street NY, LLC(2)
|
| | New York, NY | | |
6/4/15
|
| |
6/30/17(3)
|
| |
12.50 – 15.00%
|
| | | $ | 316,037 | | | | | $ | 281,318 | | | | | | 3.4% | | |
Apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche II, LLC(2)
|
| |
Orange Beach, AL
|
| |
12/27/17
|
| |
1/1/30
|
| |
8.00 – 12.00%
|
| | | | 439,065 | | | | | | 439,065 | | | | | | 5.4% | | |
| | | Gulfport, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Jackson, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Senatobia, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic ECI Tranche III,
LLC(2) |
| | Little Rock, AR | | |
2/22/18
|
| |
3/1/30
|
| |
8.00 – 12.00%
|
| | | | 286,060 | | | | | | 286,060 | | | | | | 3.5% | | |
| | | Byram, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Horn Lake, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Richland, MS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic RREAF Southeast, LLC(2)
|
| | Little Rock, AR | | |
11/30/18
|
| |
12/1/23
|
| |
8.00 – 12.00%
|
| | | | 278,983 | | | | | | 280,343 | | | | | | 3.4% | | |
| | | Columbus, GA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Aetna Springs PE, LLC(2)
|
| |
Pope Valley, CA
|
| |
12/13/18
|
| |
N/A(5)
|
| |
LIBOR + 11.00%
|
| | | | 599,442 | | | | | | 610,751 | | | | | | 7.5% | | |
Total
|
| | | | | | | | | | | | | | | $ | 1,919,587 | | | | | $ | 1,897,537 | | | | | | 23.2% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition Date
|
| |
Maturity Date
|
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of Partners’
Capital |
| |||||||||||||||
Condominium Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Tahoe Beach Club, LLC(2)
|
| | Gardnerville, NV | | |
12/28/16
|
| |
12/31/18(4)
|
| |
13.00%
|
| | | $ | 1,149,332 | | | | | $ | 864,239 | | | | | $ | 864,239 | | | | | $ | 864,239 | | | | | | 10.6% | | |
Mosaic Timbers Kauai, LLC(2)
|
| | Kauai, HI | | |
11/28/16
|
| |
11/28/19
|
| |
9.13%
|
| | | | 612,810 | | | | | | 475,120 | | | | | | 475,120 | | | | | | 475,120 | | | | | | 5.8% | | |
Mosaic Timbers Kiawah,
LLC(2) |
| | Kiawah Island, SC | | |
1/31/17
|
| |
1/31/20
|
| |
9.13%
|
| | | | 543,057 | | | | | | 516,213 | | | | | | 521,016 | | | | | | 526,679 | | | | | | 6.4% | | |
Mosaic Riverwalk, LLC(2)
|
| |
Tampa, FL
|
| |
12/21/18
|
| |
12/20/19
|
| |
LIBOR + 8.75%
|
| | | | 647,325 | | | | | | 211,616 | | | | | | 199,054 | | | | | | 211,616 | | | | | | 2.6% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 2,952,524 | | | | | | 2,067,188 | | | | | | 2,059,429 | | | | | | 2,077,654 | | | | | | 25.4% | | |
Hotel Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Sacramento Hotel, LLC(2)
|
| | Sacramento, CA | | |
7/24/18
|
| |
7/23/20
|
| |
LIBOR + 9.89%
|
| | | | 1,035,720 | | | | | | 207,815 | | | | | | 203,766 | | | | | | 207,815 | | | | | | 2.5% | | |
Mosaic Silverrock, LLC(2)
|
| | La Quinta, CA | | |
11/28/18
|
| |
11/27/21
|
| |
LIBOR + 11.00%
|
| | | | 951,171 | | | | | | 200,084 | | | | | | 91,192 | | | | | | 200,084 | | | | | | 2.4% | | |
Mosaic Southlake, LLC(2)
|
| | Southlake, TX | | |
12/31/18
|
| |
12/31/20
|
| |
8.00%
|
| | | | 285,351 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Investments in Loans
|
| |
City, State
|
| |
Acquisition Date
|
| |
Maturity Date
|
| |
Interest Rate
|
| |
Commitment
|
| |
Outstanding
Principal |
| |
Amortized
Cost |
| |
Fair Value
|
| |
% of Partners’
Capital |
| |||||||||||||||
Mosaic Spring Street Hotel, LLC(2)
|
| |
Los Angeles, CA
|
| |
11/16/18
|
| |
11/15/21
|
| |
LIBOR + 9.75%
|
| | | | 1,345,643 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 3,617,885 | | | | | | 407,899 | | | | | | 294,958 | | | | | | 407,899 | | | | | | 5.0% | | |
Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic Vintage Oaks, LLC(2)
|
| | Windsor, CA | | |
3/31/17
|
| |
3/31/19
|
| |
13.00%
|
| | | | 787,487 | | | | | | 774,200 | | | | | | 774,200 | | | | | | 774,200 | | | | | | 9.5% | | |
Mosaic Portland Superblock, LLC(2)
|
| | Portland, OR | | |
12/29/17
|
| |
3/30/19
|
| |
13.00%
|
| | | | 827,107 | | | | | | 798,943 | | | | | | 798,943 | | | | | | 798,943 | | | | | | 9.8% | | |
Mosaic Righetti Ranch,
LLC(2) |
| |
San Luis Obispo, CA
|
| |
7/23/18
|
| |
9/30/19
|
| |
10.00%
|
| | | | 647,325 | | | | | | 308,769 | | | | | | 299,213 | | | | | | 308,769 | | | | | | 3.8% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 2,261,919 | | | | | | 1,881,912 | | | | | | 1,872,356 | | | | | | 1,881,912 | | | | | | 23.0% | | |
Mixed-Use Development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mosaic UNLV Gateway,
LLC(2) |
| | Las Vegas, NV | | |
12/20/17
|
| |
6/1/19
|
| |
LIBOR + 8.75%
|
| | | | 541,639 | | | | | | 281,618 | | | | | | 279,103 | | | | | | 281,618 | | | | | | 3.4% | | |
Mosaic Federal Way Mezz, LLC(2)
|
| | Federal Way, WA | | |
12/22/17
|
| |
1/1/20
|
| |
16.00%
|
| | | | 1,284,081 | | | | | | 1,209,104 | | | | | | 1,202,730 | | | | | | 1,209,104 | | | | | | 14.8% | | |
Mosaic Park DTLA, LLC(2)
|
| | Los Angeles, CA | | |
10/16/18
|
| |
10/16/21
|
| |
LIBOR + 7.00%
|
| | | | 686,957 | | | | | | 520,321 | | | | | | 513,924 | | | | | | 520,321 | | | | | | 6.4% | | |
Mosaic River Rock, LLC(2)
|
| | Sacramento, CA | | |
2/28/18
|
| |
3/1/19
|
| |
11.00%
|
| | | | 395,000 | | | | | | 381,361 | | | | | | 379,712 | | | | | | 381,361 | | | | | | 4.7% | | |
Mosaic Turk & Leavenworth,
LLC(2) |
| |
San Francisco, CA
|
| |
8/6/18
|
| |
2/6/19(4)
|
| |
LIBOR + 8.25%
|
| | | | 264,214 | | | | | | 254,001 | | | | | | 252,934 | | | | | | 254,001 | | | | | | 3.1% | | |
Subtotal
|
| | | | | | | | | | | | | | | | 3,171,891 | | | | | | 2,646,405 | | | | | | 2,628,403 | | | | | | 2,646,405 | | | | | | 32.4% | | |
Total
|
| | | | | | | | | | | | | | | $ | 12,004,219 | | | | | $ | 7,003,404 | | | | | $ | 6,855,146 | | | | | $ | 7,013,870 | | | | | | 85.8% | | |
Total investments held by
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 8,774,733 | | | | | $ | 8,911,407 | | | | | | 109.0% | | |
Other net assets of
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 506,339 | | | | | $ | 485,682 | | | | | | 5.9% | | |
Total investments in
investments in real estate joint ventures |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
9,281,072
|
| | | |
$
|
9,397,089
|
| | | | | | | |
|
|
Net Investment Income from Real Estate Joint Ventures (Note 4)
|
| | | $ | 805,836 | | |
| Fund Expenses | | | | | | | |
|
Administration expense
|
| | | | 18,875 | | |
|
Organizational expenses
|
| | | | 26,434 | | |
|
Professional fees
|
| | | | 42,429 | | |
|
Total Fund Expenses
|
| | | | 87,738 | | |
|
Net Investment Income
|
| | | | 718,098 | | |
|
Realized Loss from Real Estate Joint Ventures
|
| | | | (103,172) | | |
|
Change in Unrealized Appreciation from Real Estate Joint Ventures
|
| | | | 111,497 | | |
|
Net Income
|
| | | $ | 726,423 | | |
| | |
Class A/CX
Members |
| |
Total Partners’
Capital |
| ||||||
Partners’ capital, beginning of year
|
| | | $ | 7,411,836 | | | | | $ | 7,411,836 | | |
Net income
|
| | | | 726,423 | | | | | | 726,423 | | |
Distributions
|
| | | | (684,051) | | | | | | (684,051) | | |
Contributions
|
| | | | 2,059,898 | | | | | | 2,059,898 | | |
Redemptions
|
| | | | (1,335,272) | | | | | | (1,335,272) | | |
Partners’ capital, end of year
|
| | | $ | 8,178,834 | | | | | $ | 8,178,834 | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 726,423 | | |
|
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | |
|
Net Investment income from real estate joint ventures
|
| | | | (805,836) | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | (111,497) | | |
|
Realized loss from real estate joint ventures
|
| | | | 103,172 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | (4,952,047) | | |
|
Distributions from investments in real estate joint ventures
|
| | | | 4,074,960 | | |
|
Amortization of organizational costs
|
| | | | 26,434 | | |
|
Changes in assets and liabilities:
|
| | | | | | |
|
Due to/from related parties
|
| | | | (684,459) | | |
|
Accounts payable
|
| | | | (23,465) | | |
|
Other liabilities
|
| | | | (12,459) | | |
|
Net cash used in operating activities
|
| | | | (1,658,774) | | |
| Cash flows from financing activities: | | | | | | | |
|
Distributions, net of change in distributions payable
|
| | | | (947,437) | | |
|
Contributions, net of change in contributions received in advance
|
| | | | 2,059,898 | | |
|
Redemptions, net of change in redemptions payable
|
| | | | (335,428) | | |
|
Net cash provided by financing activities
|
| | | | 777,033 | | |
|
Net decrease in cash during the year
|
| | | | (881,741) | | |
|
Cash – beginning of year
|
| | | | 1,015,492 | | |
|
Cash – end of year
|
| | |
$
|
133,751
|
| |
|
Investment type
|
| |
Valuation technique
|
| |
Unobservable input
|
| |
Range
(Weighted Average) |
|
| | | | | | | | | |
8.00 – 16.00%
|
|
|
Investments in Loans
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
(11.99%)
|
|
| | | | | | | | | |
8.00 – 15.00%
|
|
|
Investments in Preferred Equity
|
| |
Discounted cash flow
|
| |
Discount rate
|
| |
(9.63%)
|
|
|
Balance at January 1, 2018
|
| | | $ | 7,705,841 | | |
|
Contributions to investments in real estate joint ventures
|
| | | | 4,952,047 | | |
|
Distributions from investments in real estate joint ventures
|
| | | | (4,074,960) | | |
|
Net investment income from real estate joint ventures
|
| | | | 805,836 | | |
|
Change in unrealized appreciation from real estate joint ventures
|
| | | | 111,497 | | |
|
Realized loss from real estate joint ventures
|
| | | | (103,172) | | |
|
Balance at December 31, 2018
|
| | | $ | 9,397,089 | | |
|
Change in unrealized appreciation for investments held at December 31, 2018
|
| | | $ | 75,944 | | |
|
Interest income
|
| | | $ | 867,083 | | |
|
Accrued preferred returns
|
| | | | 93,907 | | |
|
Other income
|
| | | | 734,600 | | |
|
Professional fees
|
| | | | (48,156) | | |
|
Administration expense
|
| | | | (21,090) | | |
|
Interest expense
|
| | | | (570,792) | | |
|
Organizational expenses
|
| | | | (7,575) | | |
|
Incentive fees
|
| | | | (242,141) | | |
|
Net Investment Income from Real Estate Joint Ventures
|
| | | $ | 805,836 | | |
Region
|
| |
Fair Value
|
| |
Region %
|
| ||||||
Mountain
|
| | | $ | 1,145,857 | | | | | | 13 | | |
Northeast
|
| | | | 281,318 | | | | | | 3 | | |
Pacific
|
| | | | 5,740,469 | | | | | | 64 | | |
Southeast
|
| | | | 1,743,763 | | | | | | 20 | | |
Total
|
| | | $ | 8,911,407 | | | | | | 100 | | |
Patners’ Capital per Unit
|
| |
Class A/CX
|
| |||
Partners’ Equity per Unit, beginning of period
|
| | | | 971.31 | | |
Net investment income
|
| | | | 79.33 | | |
Net gain from real estate joint ventures
|
| | | | 0.51 | | |
Distributions
|
| | | | (74.74) | | |
Partners’ Equity per Unit, end of period
|
| | | | 976.41 | | |
Total Return(1)
|
| |
Class A/CX
|
| |||
Before incentive allocation(2)
|
| | | | 11.48% | | |
After incentive allocation
|
| | | | 8.51% | | |
Ratios(3)
|
| |
Class A/CX
|
| |||
Fund expenses
|
| | | | 0.99% | | |
Funds pro rata share of incentive allocation from real estate joint ventures
|
| | | | 2.75% | | |
Funds pro rata share of expenses from real estate joint ventures
|
| | | | 0.90% | | |
Total
|
| | | | 4.63% | | |
Net investment income, after incentive allocation
|
| | | | 8.14% | | |
Exhibit No.
|
| |
Description
|
|
4.13 | | | Specimen Preferred Stock Certificate representing the shares of 6.50% Series E Cumulative Redeemable Preferred Stock, $0.0001 par value per share (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on June 10, 2021). | |
5.1** | | | Opinion of Alston & Bird LLP regarding the legality of the securities being registered. | |
8.1** | | | Opinion of Alston & Bird LLP regarding tax matters. | |
8.2** | | | Opinion of Venable LLP regarding tax matters. | |
10.1 | | | Interest Exchange Agreement, dated as of November 3, 2021, by and among Ready Capital Corporation, Sutherland Partners, L.P., MREC Management, LLC and Mosaic Special Member, LLC (incorporated by reference to Exhibit 10.1 to Ready Capital’s Current Report on Form 8-K filed on November 9, 2021). | |
21.1 | | | | |
23.1** | | | Consent of Alston & Bird LLP (included in Exhibit 5.1). | |
23.2** | | | Consent of Alston & Bird LLP (included in Exhibit 8.1). | |
23.3** | | | Consent of Venable LLP (included in Exhibit 8.2). | |
23.4* | | | | |
23.5* | | | | |
23.6* | | | | |
23.7* | | | | |
24.1* | | | | |
99.1* | | | | |
99.2* | | | | |
99.3** | | | Form of Proxy solicited by the Board of Directors of Ready Capital Corporation | |
| | | | READY CAPITAL CORPORATION | |
| | | |
By:
/s/ THOMAS E. CAPASSE
Thomas E. Capasse
Chairman of the Board and Chief Executive Officer |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ THOMAS E. CAPASSE
Thomas E. Capasse
|
| | Chairman of the Board and Chief Executive Officer (principal executive officer) | | |
January 10, 2022
|
|
|
/s/ ANDREW AHLBORN
Andrew Ahlborn
|
| | Chief Financial Officer (principal accounting and financial officer) | | |
January 10, 2022
|
|
|
/s/ JACK J. ROSS
Jack J. Ross
|
| | President and Director | | |
January 10, 2022
|
|
|
/s/ FRANK P. FILIPPS
Frank P. Filipps
|
| | Director | | |
January 10, 2022
|
|
|
/s/ DOMINIQUE MIELLE
Dominique Mielle
|
| | Director | | |
January 10, 2022
|
|
|
/s/ GILBERT E. NATHAN
Gilbert E. Nathan
|
| | Director | | |
January 10, 2022
|
|
|
/s/ ANDREA PETRO
Andrea Petro
|
| | Director | | |
January 10, 2022
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ J. MITCHELL REESE
J. Mitchell Reese
|
| | Director | | |
January 10, 2022
|
|
|
/s/ TODD M. SINAI
Todd M. Sinai
|
| | Director | | |
January 10, 2022
|
|
Exhibit 23.4
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Registration Statement on Form S-4 of our reports dated March 15, 2021, relating to the financial statements of Ready Capital Corporation, and the effectiveness of Ready Capital Corporation’s internal control over financial reporting, appearing in the Annual Report on Form 10-K of Ready Capital Corporation for the year ended December 31, 2020. We also consent to the reference to us under the heading “Experts” in the Proxy Statement/Prospectus, which is part of such Registration Statement.
/s/ DELOITTE & TOUCHE LLP
New York, New York
January 10, 2022
Exhibit 23.5
Consent of Independent Auditors
We consent to the use of our reports dated April 30, 2021, May 1, 2020, and April 30, 2019 with respect to the financial statements of Mosaic Real Estate Credit, LLC as of December 31, 2020, 2019, and 2018, respectively, and for each of the years then ended, included herein and to the reference to our firm under the heading “Experts” in the prospectus.
/s/ KPMG LLP
Los Angeles, California
January 7, 2022
Exhibit 23.6
Consent of Independent Auditors
We consent to the use of our reports dated April 30, 2021, May 1, 2020, and April 30, 2019 with respect to the financial statements of Mosaic Real Estate Credit TE, LLC as of December 31, 2020, 2019, and 2018, respectively, and for each of the years then ended, included herein and to the reference to our firm under the heading “Experts” in the prospectus.
/s/ KPMG LLP
Los Angeles, California
January 7, 2022
Exhibit 23.7
Consent of Independent Auditors
We consent to the use of our reports dated April 30, 2021, May 1, 2020, and April 30, 2019 with respect to the financial statements of Mosaic Real Estate Credit Offshore, LP as of December 31, 2020, 2019, and 2018, respectively, and for each of the years then ended, included herein and to the reference to our firm under the heading “Experts” in the prospectus.
/s/ KPMG LLP
Los Angeles, California
January 7, 2022
Exhibit 99.1
CONSENT OF WELLS FARGO SECURITIES, LLC
Ready Capital Corporation
1251 Avenue of Americas, 50th Floor
New York, NY 10020
Attention: Board of Directors
RE: | Proxy Statement / Prospectus (the “Proxy Statement/Prospectus”) of Ready Capital Corporation (“Ready Capital”), which forms part of the Registration Statement on Form S-4 of Ready Capital (the “Registration Statement”) |
Members of the Board of Directors:
We hereby consent to the inclusion of our opinion letter, dated November 3, 2021, to the Ready Capital Board of Directors as Annex B to the Proxy Statement/Prospectus included in the Registration Statement filed with the Securities and Exchange Commission as of the date hereof and the references to our firm and our opinion in such Proxy Statement/Prospectus under the headings “Summary—Opinion of Ready Capital’s Financial Advisor,” “The Transactions—Background of the Transactions,” “The Transactions—Recommendation of the Ready Capital Board and Its Reasons for the Transactions,” “The Transactions—Opinion of Ready Capital’s Financial Advisor,” and “The Transactions—Certain Ready Capital Unaudited Prospective Financial Information.”
The foregoing consent applies only to the Registration Statement being filed with the Securities and Exchange Commission as of the date hereof and not to any other amendments or supplements thereto, and our opinion is not to be used, circulated, quoted or otherwise referred to for any other purpose, nor is it to be filed with, included in or referred to in whole or in part in any other registration statement (including any subsequent amendments to the above-mentioned Registration Statement), proxy statement or any other document, except in accordance with our prior written consent.
In giving our consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder, nor do we admit that we are experts with respect to any part of such Registration Statement within the meaning of the term “experts” as used in the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
Dated: January 10, 2021
/s/ Wells Fargo Securities, LLC |
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WELLS FARGO SECURITIES, LLC |
Exhibit 99.2
CONSENT OF Wedbush SECURITIES Inc.
We hereby consent to the inclusion of our opinion letter dated November 1, 2021 to MREC Management, LLC as Annex C to, and the description and summarization of the opinion letter in, the prospectus and joint proxy statement which forms a part of the Registration Statement on Form S-4 of Ready Capital Corporation, as filed with the Securities and Exchange Commission, and the references to our firm and such opinion letter in such prospectus and joint proxy statement.
In giving our consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder, nor do we admit that we are experts with respect to any part of such Registration Statement within the meaning of the term “experts” as used in the Securities Act of 1933, as amended, or the rule and regulations of the Securities and Exchange Commission thereunder.
Dated: January 7, 2022 | |
/s/ Wedbush Securities Inc | |
Wedbush Securities Inc. |
1000 Wilshire Blvd. Los Angeles, CA 90017
213.688.8000 / https://www.wedbush.com/
Wedbush Securities, Inc., member New York Stock Exchange/SIPC